When There Is a Recessionary Gap, Capital and Labor Resources

question 121

Multiple Choice

When there is a recessionary gap, capital and labor resources are:

• A)not being fully utilized.
• B)decreasing in number.
• C)misallocated.
• D)producing beyond their capacity.

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Definitions:

Remote Associates Test

A creativity test that measures the ability to see relationships between seemingly unrelated words and to generate a word that is linked to all three.

Divergent Thinking

A thought process or method used to generate creative ideas by exploring many possible solutions, emphasizing spontaneity and non-linear approaches.

Heuristic

A rule of thumb that is derived from experience and used in decision making and problem solving, even though there is no guarantee of its accuracy or usefulness.

Insightful

Having or showing an accurate and deep understanding; perceptive.