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-The Data in the Above Table Show That When the |

Question 59

Multiple Choice

 Price  level  A ggregate  demand  (trillions of  2005 dollars)   Short-run  aggregate  supply  (trillions of  2005 dollars)   Long-run  aggregate  supply  (trillions of  2005 dollars)  140487130577120667110757100847\begin{array} { | l | l | l | l | } \hline \begin{array} { l } \text { Price } \\\text { level }\end{array} & \begin{array} { l } \text { A ggregate } \\\text { demand } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} & \begin{array} { l } \text { Short-run } \\\text { aggregate } \\\text { supply } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} & \begin{array} { l } \text { Long-run } \\\text { aggregate } \\\text { supply } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} \\\hline 140 & 4 & 8 & 7 \\\hline 130 & 5 & 7 & 7 \\\hline 120 & 6 & 6 & 7 \\\hline 110 & 7 & 5 & 7 \\\hline 100 & 8 & 4 & 7 \\\hline\end{array}
-The data in the above table show that when the price level is 120,


A) the long-run aggregate supply curve will shift leftward in the future.
B) the unemployment rate is below its natural rate.
C) the unemployment rate is above its natural rate.
D) money wages rates will rise in the future.

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