As Actual Output Falls Below the Potential Level in the Short

question 99

Multiple Choice

As actual output falls below the potential level in the short run,which of the following is most likely to occur?

• A)More resources will become unemployed.
• B)The price level will increase.
• C)Real GDP will increase.
• D)Nominal GDP will remain constant.
• E)The natural rate of unemployment will fall.

---

Definitions:

Self-consciousness

An acute awareness of oneself, particularly regarding one's appearance or actions, often leading to feelings of vulnerability or discomfort.

Conceptions

Ideas, notions, or theories about something, typically formed through mental understanding and thought processes.

Social Reality

Constructs created by society and individuals that are perceived as real, influencing understanding and behavior in the social world.

Self-consciousness

The awareness of oneself as an individual, especially the consciousness of one's own thoughts, feelings, and identity.