The Following Question Are Based on the Following Information

question 1

Multiple Choice

The following question are based on the following information:

-If intended spending falls short of the total value of final goods and services produced

• A) GDP will rise.
• B) firms will cut back on their production rates.
• C) inventories will be depleted faster than firms desire.
• D) the aggregate supply curve must be vertical.
• E) depreciation exceeds investment.

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Definitions:

Sectoral Shifts

Changes in the economic landscape that cause resources (like labor) to move from one industry or sector to another, often due to technological changes or globalization.

Frictional Unemployment

Short-term unemployment that occurs when transitioning between jobs or entering the workforce.

Unemployment Insurance

Unemployment insurance is a government program that provides temporary financial assistance to workers who have lost their jobs through no fault of their own.

Structural Unemployment

Joblessness arising from the restructuring of industries, usually caused by advancements in technology, instead of variations in market supply or demand.