If Demand Increases in a Perfectly Competitive Market,then in the Short

question 61

Multiple Choice

If demand increases in a perfectly competitive market,then in the short run supply will:

• A) increase.
• B) decrease.
• C) not change.
• D) either increase or decrease.

Understand the concepts of equilibrium GDP, recessionary gaps, inflationary gaps, and their indicators.

Analyze the relationship between economic growth, government budget deficits/surpluses, and the national debt.

Comprehend the role and impact of automatic stabilizers in smoothing out economic cycles.

Understand the implications of government borrowing and the crowding-out effect in fiscal policy.

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Definitions:

High-risk Executive Behaviours

Actions or decisions by top management that carry a significant chance of negative consequences for the organization or its stakeholders.

Ethical

Pertaining to or dealing with morals, the principles of morality pertaining to right and wrong conduct.

Outsourcing

A contractual relationship for the provision of business services by an external provider.

World Wide Web

A system of interlinked hypertext documents accessed through the Internet, facilitating the sharing and accessing of information globally.