Using Figure 9

question 139

Multiple Choice

Using Figure 9.9,and assuming the full-employment output level is $50 billion,

• A)There is an inflationary gap of $50 billion income.
• B)There is a recessionary gap of $50 billion income.
• C)There is an inflationary gap of $25 billion income.
• D)The economy is at macro equilibrium.

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Definitions:

Performance-Based Pay

A compensation strategy that ties a portion of an employee's pay directly to their performance or achievements, incentivizing high performance.

Cash Rewards

Monetary incentives provided to employees, customers, or individuals as recognition for their achievements, loyalty, or participation.

Performance

Performance refers to the execution and accomplishment of given tasks measured against preset known standards of accuracy, completeness, cost, and speed.

Merit Pay

A pay increase given to employees based on their performance, as a reward for achieving specific goals or outstanding work.