Suppose an Economy Is Operating at Its Maximum Sustainable Output

question 67

Multiple Choice

Suppose an economy is operating at its maximum sustainable output rate. Neither recession nor economic boom are present. Which of the following would be true?

• A) The economy would be considered at full employment.
• B) Actual GDP would exceed potential GDP.
• C) Actual unemployment will be less than the natural rate of unemployment.
• D) One hundred percent of the labor force is employed.

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Definitions:

Risks

Potential for loss, harm, or other adverse effects resulting from internal or external vulnerabilities, and the possibility that the outcome may differ from expectations.

Selective Presentation

The strategic disclosure of only certain information, while withholding other facts, to influence perception or outcome.

Flexible Position

A negotiator's ability to adjust their demands or stance based on the discussion's progress and the other party's needs.

Advantages

Positive or favorable factors or conditions that contribute to reaching a goal or achieving a desirable outcome.