Answer: Producers will use overtime shifts and strain capacity.
An inflationary gap essentially means that there's too much money chasing too few goods/resources and this causes an increase in price level. To profit from this increased price level and meet the demand, producers will attempt to increase production by any means possible, i.e. overtime shifts and over utilising resources.
Which of the following most likely occurs when an inflationary gap exists? Multiple Choice Producers will...
19. Mention which of the two output gap occurs in the following cases: recessionary gap or inflationary gap? a. the economy is creating less output than its potential b. the economy is creating more output than its potential
19. Mention which of the two output gap occurs in the following cases: recessionary gap or inflationary gap? a. the economy is creating less output than its potential b. the economy is creating more output than its potential
Product 13) 13) The gap that exists when equilibrium real Gross Domestic (GDP) is greater than full employment real Gross Domestic Product (GDP) is called a(n) A) demand gap. C) recessionary gap B) employment gap D) inflationary gap 14) 14) Economic growth will NOT result in inflation if aggregate demand shifts A) outward to the right at the same speed as aggregate supply B) outward to the right as aggregate supply shifts inward to the left. C) inward to the...
Which of the following is true of trade diversion? A. It occurs when high-cost domestic producers are replaced by low-cost producers within the free trade area B. it is the ultimate goal of most free trade agreements C. it occurs when higher-cost external producers are replaced by lower-cost external producers within the free trade area D. it leads to greater economic benefits than trade creation E. it occurs when lower-cost external suppliers are replaced by higher-cost external suppliers within the...
Which is the most likely mechanism for the following reaction? NaOEt ЕОН Multiple Choice SN1 SN2 E1 E2
Which of the following is most likely to be considered an analytical procedure? Multiple Choice О O Testing purchases at year-end to determine they were recorded in the proper period. Comparing inventory balances to recent sales activities, Selecting a sample of year-end receivables for confirmation. Reconciling physical counts of inventory to perpetual records.
2) Answer the following multiple choice questions. (3 pts cach) a) Which is the most likely product for the following reaction? 戲? Products EN aenantiomer b) enantomer 0% 0% H OH нон c) enantiomer denaniomer b) Which of the following is NOT a product of the chlorination of the following alkene? 899 e3 b. C. e3 CI
Tests of controls are most likely to be performed when: Multiple Choice ) The client's control environment appears weak. Controls seem weak and must be properly documented. 1 ) The auditor wishes to assess control risk at the maximum. The auditor plans to rely on the controls.
An expansionary gap is most likely to occur when which of these conditions is true? Select one: a. Real GDP is below potential GDP O b. The economy is experiencing a severe recession C. There is a deflation (a fall in prices) in the economy d. The unemployment rate is relatively low e. The economy is not generating any jobs
1. Which of the following confirmation requests would be least likely to be used? Multiple Choice Confirming accounts receivable balances with customers. Confirming inventories on hand with warehouses. Confirming loan terms and amounts with lenders. Confirming authorization for major transactions with directors 2. Auditors will apply tests of details to accomplish which of the following? Multiple Choice Compliance with generally accepted accounting principles. Evaluating the operating effectiveness of management’s policies and procedures. Detecting material misstatements affecting the financial statements. Determining...