If Equilibrium GDP Is Below Potential,then

question 156

Multiple Choice

If equilibrium GDP is below potential,then

• A) unemployment is unusually low
• B) the Fed will lower the money supply
• C) the wage rate will fall as workers compete for scarce jobs
• D) the aggregate supply curve will shift leftward
• E) the wage rate will remain stable as labor productivity increases

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Definitions:

Information Flow

The transfer or movement of information within a system or among various systems.

Protein Synthesis

The process by which cells build proteins based on the instructions encoded in DNA, consisting of transcription and translation stages.

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms.

mRNA

Messenger RNA, a type of RNA that conveys genetic information from DNA to the ribosome, where it specifies the amino acid sequence of the protein products of gene expression.