In the Aggregate Demand-Output Model, If an Economy Operates Above

question 130

Multiple Choice

In the aggregate demand-output model, if an economy operates above equilibrium GDP, there will be:

• A) unplanned inventory depletion.
• B) an increase in GDP.
• C) an increase in employment.
• D) a decrease in GDP.

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Definitions:

Self-Actualized

Pertaining to the state of having achieved one's full potential, often associated with realizing personal talents and capabilities.

Hawthorne Effect

The tendency of persons singled out for special attention to perform as expected.

Group Atmosphere

The overall mood, spirit, or tone that characterizes the interactions and dynamics within a team or organizational unit.

Participative Supervision

A management style where supervisors seek input and involve employees in decision-making processes.