Multiple Choice
Use the following to answer questions .
Exhibit: Using the Aggregate Demand/Aggregate Supply Model 1 
-(Exhibit: Using the Aggregate Demand/Aggregate Supply Model 1) Suppose the economy is initially at point A. All of the following statements are true except
A) the economy is in equilibrium at its potential output.
B) the labor market is in equilibrium.
C) there is no cyclical unemployment.
D) there is no structural or frictional unemployment.
Correct Answer:
Verified
Correct Answer:
Verified
Q22: Use the following to answer questions .<br>Exhibit:
Q23: Use the following to answer questions .<br>Exhibit:
Q24: The long-run aggregate supply curve<br>A) relates the
Q25: Use the following to answer questions .<br>Exhibit:
Q26: Potential output is<br>A) the level of real
Q29: What happens in the domestic economy when
Q30: What is the difference between a change
Q31: The multiplier is given by<br>A) the ratio
Q32: Suppose the economy is initially in long-run
Q251: The short-run aggregate supply curve slopes upward