When Aggregate Demand Is High Enough to Drive Unemployment Below

question 119

Multiple Choice

When aggregate demand is high enough to drive unemployment below the natural rate,

• A) there is downward pressure on the price level,and the government may want to conduct contractionary fiscal policy.
• B) the economy is slipping into a recession,and the government may want to conduct expansionary fiscal policy.
• C) there is upward pressure on the price level,and the government may want to conduct contractionary fiscal policy.
• D) there is upward pressure on the price level,and the government may want to conduct expansionary fiscal policy.
• E) there is downward pressure on the price level,and the government may want to conduct expansionary fiscal policy.

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Definitions:

Passive Learning

A learning style where the learner receives information without actively engaging or interacting with the material, often leading to lower retention rates.

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Events or activities from which individuals acquire new knowledge or skills, contributing to personal or professional growth.

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Organizational Conditions

The circumstances or environment within an organization that affect its operations and the well-being of its members.