Multiple Choice
The figure below shows the short-run aggregate supply of an economy.Which of the following is likely to be true if the actual price level in this figure exceeds the expected price level?
A) Equilibrium output will be Y2 in the short run.
B) Equilibrium output will be Y1 in the short run.
C) The actual unemployment rate is below the natural rate.
D) Potential output is greater than actual output.
E) The actual price level is less than the equilibrium price level.
Correct Answer:
Verified
Correct Answer:
Verified
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