Solved

When Does Actual Output Fall Below Potential Output

Question 137

Multiple Choice

When does actual output fall below potential output?  


A)  during a recession 
B)  when aggregate demand exceeds aggregate supply 
C)  when the natural rate of unemployment exceeds the actual rate of unemployment 
D)  when the natural rate of unemployment is zero

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q132: What relationship does aggregate supply describe?  <br>A) the

Q133: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4905/.jpg" alt=" -Refer to the

Q134: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4905/.jpg" alt=" -Refer to the

Q135: In the long run, under what circumstances

Q136: How might a recessionary gap be closed

Q138: Which of the following supply shocks would

Q139: What do fixed resource prices help explain?

Q140: Suppose the economy is initially in long-run

Q141: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4905/.jpg" alt=" -Refer to the

Q142: What does the real wage represent?  <br>A) the