When Actual Output Equals Potential Output and the Inflation Rate

question 150

Multiple Choice

When actual output equals potential output and the inflation rate is stable, the economy is said to be in ________ equilibrium.

• A)contractionary
• B)expansionary
• C)short-run
• D)long-run

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Definitions:

Secondary Appraisal

The evaluation of one's ability to cope with the demands of a threatening or challenging situation after initially evaluating its significance.

Stressor

Any event, situation, or stimulus that causes stress.

Primary Appraisal

The initial evaluation process where an individual assesses the significance of a stressor to determine its potential threat.

Distress-eustress Dichotomy

A concept distinguishing between detrimental stress (distress) and beneficial stress (eustress) in terms of their effects on an individual’s health and well-being.