Other Things Constant, a Decrease in Nominal GDP Will Generally

question 91

Multiple Choice

Other things constant, a decrease in nominal GDP will generally

• A) increase the demand for money.
• B) decrease the demand for money.
• C) increase the nominal interest rate.
• D) decrease the money supply.

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Definitions:

Gainsharing

Is a team- and group-based incentive system designed to share the cost savings from productivity improvements with employees.

Profit-Sharing

A compensation strategy where employees receive a share of the company's profits, often as a bonus or part of their salary.

Productivity Improvements

Productivity improvements refer to increases in the efficiency of production processes, resulting in higher output for the same or lower input.

Group Incentive System

a reward system where incentives are based on the collective performance of a group, team, or department rather than individual performance.