When the Economy Is Operating at an Output Rate Less

question 191

Multiple Choice

When the economy is operating at an output rate less than full-employment capacity,

• A) a strong demand for resources will cause resource prices to rise.
• B) actual unemployment will be less than the natural rate of unemployment.
• C) the rate of inflation will tend to rise.
• D) weak demand for investment will place downward pressure on real interest rates.

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Definitions:

Malabsorption

A disorder where the intestines fail to efficiently absorb nutrients from food, leading to deficiencies and other health issues.

Iron Supplements

Products taken to increase iron levels in the body, often used to treat or prevent iron-deficiency anemia.

Ostomy

A surgical procedure creating an opening in the body for the discharge of body wastes.

Stoma

A surgically created opening on the surface of the body which connects to the digestive or respiratory system to allow waste to leave the body.