Multiple Choice
If an economy's actual GDP exceeds its potential GDP,_____.
A) wages and prices must fall
B) self-correcting forces will shift the SRAS curve to the left
C) self-correcting forces will shift the AD curve to the left
D) inflation will occur when AD shifts to the left
E) unemployment is likely to be unusually high
Correct Answer:

Verified
Correct Answer:
Verified
Q1: In general,the faster inflationary expectations adjust,the:<br>A)less macro
Q2: If an economy is at potential GDP
Q4: Ms.Jones is a professor at a university.She
Q5: Those who favor a passive approach to
Q6: The figure below shows the relationship between
Q7: The figure below reflects the inverse relationship
Q8: The short-run Phillips curve is drawn for
Q9: Which of the following would correspond to
Q10: The figure below shows the price level,real
Q11: The time it takes for a new