Other Things Being Constant, What Will Be the Effect of Each

question 6

Essay

Other things being constant, what will be the effect of each of the following upon the equilibrium level of GDP?
(a) An increase in the amount of liquid assets consumers are holding;
(b) A sharp rise in stock prices;
(c) A rapid upsurge in the rate of technological advance; and
(d) A sharp increase in the interest rate.

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Definitions:

Organizational Size

This refers to the magnitude of an organization, typically measured by the number of its employees, the scale of its operations, or its market share.

Adhocracy

A flexible, adaptable, and informal organizational structure that is defined by a lack of rigid procedures, roles, and hierarchies, facilitating innovation and creativity.

Mutual Adjustment

A process of coordinating actions and decisions through informal communication and negotiation among parties.

Support Staff

Employees who provide administrative or technical support to an organization, enabling primary operations without being directly involved.