If We Observe an Economy Adjusting to Potential GDP as Prices

question 40

Multiple Choice

If we observe an economy adjusting to potential GDP as prices fall and real output increases,we can conclude that _____.

• A)the economy was experiencing an expansionary gap
• B)there is a labor surplus
• C)the economy was experiencing a recessionary gap
• D)self-correction is not the process that is occurring
• E)there are widespread labor shortages

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Definitions:

Five Factors

Refers to the Big Five personality traits model, including openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Nonconforming

The act of not adhering to norms, rules, or laws that are set by society or any groups within it.

Creative

The quality or ability to produce or bring into existence something new, whether a new solution to a problem, a new method or device, or any original artistic product.

Imaginative

Having or showing creativity or inventiveness, often implying the ability to visualize or conceive of new ideas or concepts.