While Stuck in Traffic, Marta Could Not Tell Whether the Police

question 16

Multiple Choice

While stuck in traffic, Marta could not tell whether the police officer was signaling her forward or telling her to turn right. This is because nonverbal communication is

• A) intentional.
• B) unintentional.
• C) ambiguous.
• D) territorial.

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Definitions:

Aggregate Demand

This is the total demand for all goods and services within an economy at a given overall price level and in a given time period.

Potential Output

The highest level of real GDP that an economy can achieve when using its resources fully and efficiently, without causing inflation.

Nominal Wages

The amount of money paid to workers before considering the effects of inflation on purchasing power.

Price Level

A measure of the average level of prices of goods and services in the economy at a specific time.