Because the Open-Economy Macroeconomic Model Focuses on the Long Run

question 277

Multiple Choice

Because the open-economy macroeconomic model focuses on the long run, it is assumed that

• A)GDP, but not the price level is given.
• B)the price level, but not GDP is given.
• C)both the price level and GDP are given.
• D)the price level and GDP are variables to be determined by the model.

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Definitions:

Source of Information

The origin from which data or knowledge is obtained.

Pay Compression

A situation where there is only a small difference in pay between employees regardless of their experience, skills, or seniority, often leading to dissatisfaction and motivational issues.

Experience Levels

Refers to the degrees of knowledge, skill, and proficiency acquired through work or education over time.

Performance Abilities

The capabilities and skills that an individual possesses which contribute to their effectiveness and efficiency in job tasks.