Once Decision Makers Fully Adjust to an Increase in Prices

question 216

Multiple Choice

Once decision makers fully adjust to an increase in prices,

• A) the natural rate of unemployment will decline.
• B) competitive forces will restore the usual relationship between product prices and costs.
• C) producers' profits will exceed their normal level.
• D) producers will expand output beyond the economy's potential.

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Definitions:

Social Loafing

The phenomenon in which each individual contributes a little less as more individuals are added to a task; a source of inefficiency when working in teams.

Recognize Individual

The act of acknowledging and respecting the uniqueness and identity of an individual person.

Group Members

Individuals who belong to a specific collective or organization with shared goals or interests.

Compliance

Adherence to laws, regulations, or specified standards.