In the Income-Expenditure Model, at Equilibrium GDP

question 19

Multiple Choice

In the income-expenditure model, at equilibrium GDP

• A)either unemployment or inflation may occur.
• B)inflation can occur but unemployment cannot.
• C)unemployment can occur but inflation cannot.
• D)both unemployment and inflation are impossible.

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Definitions:

Controlling

Exercising authority or influence over a situation or individual to dictate or direct outcomes.

Negative Reinforcement

A process in behavior modification where the removal of an unfavorable outcome or stimulus strengthens the likelihood of a desired behavior.

Buzzer

An electronic device that produces a loud or vibrating sound as a signal or alarm.

Seat Belt

A safety device in vehicles designed to secure the occupant against harmful movement that may result during a collision or a sudden stop.