Which of the Following Automatically Works to Eliminate Output Gaps

question 153

Multiple Choice

Which of the following automatically works to eliminate output gaps over time,bringing production back into line with potential output?

• A) Expansionary monetary policy.
• B) Contractionary monetary policy.
• C) Price changes by firms and adjustments to wages.
• D) Efforts by firms to produce in line with potential output.
• E) Government mandates that firms use all their resources.

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Definitions:

Relational Aggression

A type of aggression characterized by harm to relationships or social standing, often through gossip or social exclusion.

Physical Aggression

Behaviors that intend to cause physical harm or injury to another person.

Effect Size

A quantitative measure of the magnitude of a phenomenon or the strength of the relationship between two variables.

Sex-Selective Abortion

The practice of terminating a pregnancy based upon the predicted sex of the unborn child, often favoring males over females.