When an Economy Is Temporarily Operating at an Output That

question 188

Multiple Choice

When an economy is temporarily operating at an output that is beyond its full-employment rate,

• A) excess supply in resource markets will eventually lead to lower resource prices, which will decrease costs and direct the economy toward full employment.
• B) excess demand in resource markets will lead to higher resource prices, which will increase costs and direct the economy toward full employment.
• C) lower wages and prices will quickly restore full employment.
• D) only restrictive fiscal policy will direct the economy back to full employment.

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Definitions:

Assertiveness

The quality of being confident and self-assured without being aggressive.

Cooperation

The act of working together towards a common goal or benefit, often requiring mutual effort and communication.

Responsibility Conflict

Disagreement or misunderstanding about who is responsible for what tasks within a team or organizational setting.

Authority

Relates to the power or right to give orders, make decisions, and enforce obedience.