If Aggregate Demand Grows Only Slightly Faster Than Potential GDP

question 314

Multiple Choice

If aggregate demand grows only slightly faster than potential GDP, then the economy will

• A) experience economic growth with high inflation.
• B) experience recession.
• C) experience economic growth with low inflation.
• D) be at a business-cycle peak.

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Definitions:

Skill Variety

The degree to which a job requires a range of different activities and skills to carry out the work effectively.

Employee Involvement Groups

Teams or committees of workers who are involved in making decisions regarding the workplace operations or policies.

Consensus Decision Making

A group decision-making process that seeks agreement and acceptance of all participants on a decision, ensuring all voices are heard and considered.