Suppose Resource Suppliers and Demanders Find Out That Their Price

question 119

Multiple Choice

Suppose resource suppliers and demanders find out that their price expectations were wrong.What will occur when they take corrective actions?  

• A) The corrective actions will cause the economy to move away from the potential output level. 
• B) The corrective actions will raise the unemployment level above the natural rate of unemployment. 
• C) The corrective actions will shift the aggregate demand curve. 
• D) The corrective actions will shift the short-run aggregate supply curve.

---

Definitions:

Percent Defective

The percentage of all units produced that fail to meet the required quality standards.

Control Charts

A statistical tool used in process monitoring to determine if a manufacturing or business process is in a state of control.

Ideal Weight

The weight considered to be most favorable for an individual's health and well-being, based on factors such as height, age, and gender.

Lower Control Limit

The lowest boundary in process control that allows for process variability while still indicating acceptable performance levels.