If Profits Are High Because the Price Level Rose

question 28

Multiple Choice

If profits are high because the price level rose,

• A) potential GDP must be decreasing.
• B) it is likely the result of an increase in the real wage rate.
• C) business failures rise and the quantity of real GDP supplied increases.
• D) new businesses open and the quantity of real GDP supplied increases.
• E) the AS curve shifts leftward.

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Definitions:

Organizational Performance

An assessment of how effectively an organization meets its goals and objectives.

Stakeholder Orientation

A company's approach to considering the interests and well-being of all its stakeholders in decision making.

Ethical

Pertaining to or dealing with morals or the principles of morality; pertaining to right and wrong in conduct.

Socially Responsible

Committed to acting in ways that benefit society and the environment, beyond the minimum legal requirements.