The Following Are Aggregate Demand and Supply Schedules for a Hypothetical

question 105

Multiple Choice

The following are aggregate demand and supply schedules for a hypothetical economy.All figures are in $ billions.
Note: Potential GDP is 3,000.
-Refer to the information above to answer this question.Assume that technological change increases aggregate supply by 340.What would be the result?

• A)A new full employment level of Real GDP of 3,340 and lower prices.
• B)An inflationary gap of 340.
• C)A recessionary gap of 240.
• D)A new equilibrium of Real GDP of some indeterminate level depending on how much prices fell.
• E)A new full-employment level of Real GDP of 3,340 with no change in prices.

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Definitions:

Self-managed Teams

Groups of workers who are given administrative oversight for their task domains, including planning and scheduling of work, the allocation of resources, and the operation of their work processes.

Self-managed Team

A group of employees who are provided with the autonomy to manage their work and make decisions without direct supervision.

Managerial Tasks

Activities or duties that a manager is responsible for, aiming at achieving organizational objectives.

Organizational Synergy

The increased efficiency or performance that results when individuals or groups work together effectively within an organization.