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.

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Definitions:

Price Appreciation

The increase in the value of an asset or security over time.

Expected to Pay

The anticipated amount of money that will be disbursed for liabilities, services, or goods acquired.

Require a Return

The expectation of financial gain on an investment, which can manifest as interest, dividend, or capital appreciation.

Current Value

The present worth of an asset or company based on market conditions, differing from historical costs or book value.