Which of the Following Mechanisms Helps Output to Return to Potential

question 111

Multiple Choice

Which of the following mechanisms helps output to return to potential after a demand shock?

• A) Change in business mentality
• B) Change in nominal wage rate
• C) Large changes in the capital stock
• D) Inability of the price level to change
• E) Change in inventories.

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Definitions:

Moral Objections

Refusals or oppositions based on personal beliefs about what is right and wrong.

Libel

A form of defamation expressed in print, writing, pictures, or signs, damaging a person's reputation without just cause or excuse.

Slander

A false and defamatory oral statement about a person, harming their reputation.

Permanent

Permanent describes something that is intended to last or continue indefinitely, without an anticipated end or change.