If Rapid Increases in Oil Prices Caused Price Levels to Increase

question 35

Multiple Choice

If rapid increases in oil prices caused price levels to increase and real GDP to decrease in the short run, the economy would experience

• A)stagflation.
• B)long-run economic decline.
• C)hyperinflation.
• D)an increase in the natural rate of unemployment.
• E)a depression.

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Definitions:

Performance Appraisals

The regular review and evaluation of an employee's job performance and overall contribution to an organization.

Piecework Rate

Rate of pay per unit produced.

Production Workers

Individuals involved in the manufacturing or assembly phase of production, responsible for operating machinery, building goods, and maintaining efficiency on the production line.

Straight Piecework Plan

A compensation system where workers are paid a fixed rate for each unit produced or action performed, regardless of time.