-Refer to the Graph in the Exhibit

question 98

Multiple Choice

-Refer to the graph in the exhibit.Suppose P₁ is the prevailing price level.Which of the following best describes the situation?  

• A) There is an expansionary gap.
• B) The price level will decrease.
• C) The expected price level is the same as the actual price level.
• D) The unemployment rate is below the natural unemployment rate.

---

Definitions:

Feedback

Information provided as a response to an action, process, or behavior, intended to guide future improvements or decisions.

Control System

Procedures and tools designed to monitor performance, compare it with goals, and take corrective action as necessary to ensure the achievement of strategic objectives.

Customer Needs

The recognized necessities or desires that consumers look to fulfill through purchasing products or services.

Six Sigma

A set of techniques and tools for process improvement, aiming at reducing defects and variability in manufacturing and business processes.