As Actual Output Falls Below the Potential Level in the Short

question 99

Multiple Choice

As actual output falls below the potential level in the short run,which of the following is most likely to occur?

• A)More resources will become unemployed.
• B)The price level will increase.
• C)Real GDP will increase.
• D)Nominal GDP will remain constant.
• E)The natural rate of unemployment will fall.

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Definitions:

Mutual Exclusivity

Mutual exclusivity refers to a condition where two or more events or propositions cannot simultaneously occur or be true.

Integrative Agreements

Solutions to negotiations that involve creative problem solving to achieve a win-win outcome for all parties.

Free Flow of Information

Refers to the unrestricted access and exchange of data and ideas among individuals and groups.

Substantive Interests

The core needs, desires, or goals that parties seek to achieve in a negotiation or conflict situation.