Multiple Choice
If potential output exceeds aggregate demand:
A) an economy's resources are over-utilized.
B) an economy's resources are under-utilized.
C) an economy's resources are fully employed.
D) the pattern of resource use cannot be determined without knowing short-run aggregate supply.
Correct Answer:
Verified
Correct Answer:
Verified
Q77: The interest-rate and wealth effects are important
Q78: Fiscal policy and/or monetary policy:<br>A) change aggregate
Q79: Estimates in recent years put the natural
Q80: The substitution (trade-effect) shows that:<br>A) an increase
Q81: An unemployment rate greater than the natural
Q82: During the recessions of the early 1980s
Q83: The potential output line is:<br>A) vertical because
Q84: As the price level falls, the holders
Q85: The aggregate demand - aggregate supply model
Q86: A recessionary gap refers to the:<br>A) amount