When Output Is Less Than the Economy's Long-Run Capacity, Which

question 65

Multiple Choice

When output is less than the economy's long-run capacity, which of the following is most likely to occur?

• A) an abnormally low rate of unemployment
• B) reductions in real interest rates and real resource prices
• C) a sharp increase in imports
• D) a government budget surplus

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Definitions:

Make or Buy

A decision-making process involving an analysis on whether to produce a product in-house or to purchase it from an external supplier.

Core Competencies

Unique abilities or advantages that a company or an individual possesses, setting them apart from competitors and contributing to their success and value.

Insourced

The process of performing tasks or services internally within a company, as opposed to outsourcing them to an external provider.

Outsourced

The practice of having certain job functions or processes handled outside of the company, typically by third-party vendors, instead of being conducted internally.