Which of the Following Is NOT a Reason Why Real

question 330

Multiple Choice

Which of the following is NOT a reason why real GDP can be expanded beyond a level consistent with its long-run growth path in modern Keynesian analysis?

• A) In the short run, existing workers can work more hours.
• B) Prices and wages are flexible, allowing for needed adjustments.
• C) The existing capital stock can be used more intensively.
• D) Higher prices induce firms to hire more workers.

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Definitions:

Monopolist

An individual or company that is the sole supplier of a particular good or service, allowing them to control the market price.

Maximizing Profits

The process of adjusting production levels and pricing strategies to achieve the highest possible return on investment.

Minimizing Losses

Strategies or actions taken by businesses or investors to reduce financial losses or minimize risks.

Total Profit

The total amount of money a business has earned after all expenses have been deducted from its total revenue.