When the Inflationary Gap Is Finally Eliminated, a Long-Run Equilibrium

question 31

Multiple Choice

When the inflationary gap is finally eliminated, a long-run equilibrium is established with a ____ price level and with GDP ____ potential GDP.

• A)higher; equal to
• B)higher; greater than
• C)lower; equal to
• D)lower; greater than

---

Definitions:

Organizational Cultures

The shared values, beliefs, and practices that shape the social and psychological environment of a business or organization.

Mercenaries, Fortresses

refers to a defensive strategy in business or warfare, incorporating hired soldiers (mercenaries) and strongholds (fortresses) for protection and control.

Communes

Social groups living together with shared resources and responsibilities, often with a common ideological or lifestyle foundation.

Organizational Culture

The shared values, beliefs, and norms that influence the way employees think, feel, and behave in an organization.