Contrary to Behavior That Would Be Required to Eliminate Output

question 89

Multiple Choice

Contrary to behavior that would be required to eliminate output gaps, many firms in the economy:

• A)intentionally set prices below equilibrium prices in order to create shortages.
• B)adjust their prices only periodically.
• C)have fully-flexible prices that change constantly.
• D)only change the amount of output they produce in the long run, not in the short run.

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Definitions:

Exploration

The act of searching for the purpose of discovery of information or resources.

Exploitation

The act of using someone or something unfairly for one's own advantage, often disregarding their wellbeing.

Experimentation

involves conducting controlled tests or trials to discover, validate, or test hypotheses, theories, or products.

Decrease Accountability

Reducing the extent to which individuals or teams are held responsible for their actions, decisions, or performance.