If Short-Run Equilibrium Output Equals 20,000 and Potential Output (Y*)equals

question 38

Multiple Choice

If short-run equilibrium output equals 20,000 and potential output (Y*) equals 25,000, then this economy has a(n) ________ gap that can be closed by ________.

• A)recessionary; increasing taxes
• B)expansionary; increasing transfer payments
• C)expansionary; increasing government purchases
• D)recessionary; increasing government purchases

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Definitions:

Accurate

The quality of being correct, precise, or true representation of facts or details.

Peers

Individuals of the same age, status, or ability, often considered as equals or colleagues in a particular group.

Counterproductive Behaviours

Actions by employees that are contrary to an organization's goals, including sabotage, theft, or spreading rumors.

Appraisal Method

An appraisal method is a systematic approach used by organizations to evaluate employee performance and productivity.