The Full-Employment Rate of Output Can

question 64

Multiple Choice

The full-employment rate of output can

• A) be surpassed in the long run only if input prices are flexible.
• B) not be surpassed in either the short run or the long run.
• C) be surpassed only when firms are not yet producing at full capacity.
• D) be surpassed only in the short run.

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Definitions:

Extended Contact Effect

The reduction of prejudice through indirect relationships, wherein knowing a member of an in-group has a friends in an out-group can lead to more positive attitudes towards that out-group.

Ingroup Favouritism

Behaviour that favours one’s own group over other groups.

Generalisation

The act or process of forming conclusions based on broad patterns, observations, or experiences that apply beyond specific instances.

Contact Hypothesis

A theory suggesting that under certain conditions, interpersonal contact is one of the most effective ways to reduce prejudice between majority and minority group members.