Which of the Following Could Explain Why There Is an Increase

question 47

Multiple Choice

Which of the following could explain why there is an increase in potential GDP but the equilibrium level of GDP falls?

• A)SRAS shifted to the right by more than LRAS.
• B)AD shifted to the right by more than SRAS.
• C)AD shifted to the right by less than SRAS.
• D)AD did not shift and SRAS shifted to the left.

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Definitions:

Predetermined Wage Grades

An established set of salary levels defined before recruitment, often based on job analysis, to classify positions according to value and responsibility.

Job Classification System

A method of evaluating and categorizing positions within an organization based on duties, responsibilities, and the level of expertise required, often used to determine salary ranges.

Pay Levels

The range of compensation provided to employees, typically categorized into bands or grades based on job roles, responsibilities, and market benchmarks.

Profitability

A measure of the efficiency and financial success of a business, indicated by the amount of profit generated relative to revenue and expenses.