According to the Short-Run Aggregate Supply Curve,if Output Minus Potential

question 47

Multiple Choice

According to the short-run aggregate supply curve,if output minus potential output equals zero,then ________.

• A)unemployment might be zero
• B)inflation might be stable
• C)expected inflation must be stable
• D)price shocks must be zero
• E)none of the above

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Definitions:

Consumer Orientation

A business approach that prioritizes identifying and meeting the needs and wants of consumers.

Creates a Product

The process of designing, manufacturing, or crafting goods or services to be offered for sale or use.

Workforce

The collection of all employees or workers in a company, organization, or economy.

Decrease

A reduction in size, quantity, or degree.