When the Economy Is Operating at an Output Beyond Its

question 181

Multiple Choice

When the economy is operating at an output beyond its full-employment potential, the

• A) actual level of unemployment will exceed the natural rate of unemployment.
• B) actual level of unemployment will equal the natural rate of unemployment.
• C) strong demand for resources will place upward pressure on resource prices.
• D) aggregate demand will increase until full employment is restored.

---

Definitions:

Mental Module

A hypothesized structure in the brain theorized to be responsible for specific cognitive functions, as part of the modular view of mental processes.

Natural Selection

The process by which organisms better adapted to their environment tend to survive and produce more offspring, driving the evolution of species.

Mutations

Changes in the DNA sequence of a cell's genome, which can lead to variations in physical traits or affect the way an organism develops or functions.

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms.