Which of the Following Is Not an Assumption Made by the Dynamic

question 63

Multiple Choice

Which of the following is not an assumption made by the dynamic model of aggregate demand and aggregate supply?

• A)Potential real GDP increases continuously.
• B)The aggregate demand curve shifts to the right during most periods.
• C)The short-run aggregate supply curve shifts to the right except during periods when workers and firms expect higher wages.
• D)Aggregate demand and potential real GDP decrease continuously.
• E)Potential GDP does not depend on the price level.

Calculate per capita GDP and understand its implications for economic analysis.

Identify and differentiate between nominal, real, and per capita economic measures.

Determine the effects of inflation and deflation on economic indicators.

Understand the concept of organizational citizenship behavior and its dimensions.

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Definitions:

Quantitatively

Pertaining to the measurement or assessment of quantities or amounts, often involving numerical data and statistical methods.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, often used as an indicator of inflation.

Market Basket

A selected set of goods and services used to track changes in prices, often for the purpose of measuring inflation or the cost of living.

Pay Equity

The principle of compensating employees equally for jobs of equal value regardless of gender, ethnicity, or other non-performance-related factors.