According to the Theory of Economic Fluctuations, Which of the Following

question 25

Multiple Choice

According to the theory of economic fluctuations, which of the following explains the relationship between aggregate demand and employment during a recession?

• A)A fall in output causes potential GDP to increase.This causes employment to decline.
• B)A fall in real GDP causes aggregate demand to fall.As a result, firms lay off workers.
• C)A fall in aggregate demand causes real GDP to fall as firms adjust their production.Workers are laid off as a result.
• D)A fall in aggregate demand causes potential GDP to fall.The resulting decline in output causes employment to fall.
• E)Workers decide they would rather have more leisure time and decide not to work as much.As a result, there is less labor employed and less is produced.

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Definitions:

Constipation

A condition characterized by difficulty in passing stool or infrequent bowel movements.

Effective Body Mechanics

Techniques used to move the body that minimize the risk of injury and improve performance, essential in, e.g., lifting and moving objects safely.

Effective Lifting Techniques

Methods or practices of safely lifting and moving heavy objects or persons, particularly used in healthcare to prevent injury.

Correct Posture

The alignment of the body in a manner that properly supports the body's structures, reducing stress and strain.