Solved

The Figure Below Shows the Relationship Between an Economy's Potential

Question 50

Multiple Choice

The figure below shows the relationship between an economy's potential output,price level,and real GDP.According to those who favor a passive approach to policy,the economy will attain equilibrium at potential output when: ​
Figure 16.1​

The figure below shows the relationship between an economy's potential output,price level,and real GDP.According to those who favor a passive approach to policy,the economy will attain equilibrium at potential output when: ​ Figure 16.1​ ​   A) the short-run aggregate supply curve shifts to the left. B) the short-run aggregate supply curve shifts to the right due to a fall in real wages. C) either the money supply or government spending is increased. D) either the money supply or government spending is decreased. E) aggregate demand is decreased.


A) the short-run aggregate supply curve shifts to the left.
B) the short-run aggregate supply curve shifts to the right due to a fall in real wages.
C) either the money supply or government spending is increased.
D) either the money supply or government spending is decreased.
E) aggregate demand is decreased.

Correct Answer:

verifed

Verified

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

Related Questions