If the Economy Is Producing at Potential GDP

question 75

Multiple Choice

If the economy is producing at potential GDP

• A)unemployment is at its natural rate.
• B)the Phillips curve must be positively sloped.
• C)the short-run aggregate supply curve must be vertical.
• D)inflation in the economy is at its natural rate.

Distinguish between the various strategies for coping with uncertainty in organizations.

Understand the different sources of power in organizations.

Recognize the contingencies that can affect an individual's power within an organization.

Identify strategies to increase individual power through networking and visibility.

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Definitions:

Foreign-Currency Exchange

The system or process of converting one national currency into another and determining the exchange rates.

Government Budget Deficit

An economic condition occurring when government expenditures exceed its revenue in a fiscal period.

Interest Rate

The percentage charged or earned on a principal sum of money or an investment over a specified period of time.

Net Capital Outflow

The difference between the domestic purchases of foreign assets and the foreign purchases of domestic assets.