Given the Expected Price Level,policies for Reaching Potential GDP Will

question 122

Multiple Choice

Given the expected price level,policies for reaching potential GDP will work best if the money supply is

• A)large,so that prices at potential GDP are below expectations and people can afford to buy enough goods to support the natural level of employment
• B)large enough that prices at potential GDP are above expectations and firms can afford to hire workers
• C)small,so that prices at potential GDP are below expectations and people can afford to buy enough goods to support the natural level of employment
• D)small,so that prices at potential GDP are above expectations and firms can afford to hire the workers
• E)exactly the size that makes prices equal to the prices people expected to prevail

---

Definitions:

Job Analysis

A systematic examination of a job to identify its component tasks, responsibilities, and the necessary skills, knowledge, and abilities for performance.

Red-Circling

A practice where an employee's pay is frozen or maintained at a high rate, despite the position's salary range being reduced or the employee moving to a lower-paid position.

Pay Range

The scale of minimum to maximum pay established for a specific job or job category, aimed to competitive while reflecting experience, performance, and skill level.

Ontario Pay Equity

A policy in Ontario, Canada, requiring employers to compensate employees in female-dominated job classes at rates equal to employees in male-dominated job classes when the jobs are of comparable value.