If an Economy Is at Potential GDP and an Expansionary

question 2

Multiple Choice

If an economy is at potential GDP and an expansionary policy is correctly anticipated,the result will be:

• A)a short-run fall in output and employment.
• B)little or no increase in GDP.
• C)an increase in wages along with a dramatic fall in the price level.
• D)a rapidly expanding economy.
• E)a severe recession.

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Definitions:

Biculturalism

The ability of an individual to identify and integrate aspects of two distinct cultures, often leading to enhanced social adaptability and understanding.

Minority Cultures

Groups within a larger society that maintain unique cultural identities, often underrepresented and having different ethnic, linguistic, or religious characteristics from the dominant group.

Majority Culture

Refers to the cultural values, beliefs, and practices that are dominant in a particular society or organization.

Status Quo Leader

A leader who prefers maintaining current conditions or practices within an organization rather than seeking change or innovation.