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Exhibit 11-2 -If the Actual Price Level in Exhibit 11-2 Exceeds the 11-2

Question 14

Multiple Choice

Exhibit 11-2 Exhibit 11-2 -If the actual price level in Exhibit 11-2 exceeds the expected price level, then A) equilibrium output is Y<sub>2</sub> in the short run B) equilibrium output is Y<sub>1</sub> in the short run C) the actual unemployment rate is below the natural rate D) potential output is greater than actual output E) the actual price level is less than the equilibrium price level
-If the actual price level in Exhibit 11-2 exceeds the expected price level, then


A) equilibrium output is Y2 in the short run
B) equilibrium output is Y1 in the short run
C) the actual unemployment rate is below the natural rate
D) potential output is greater than actual output
E) the actual price level is less than the equilibrium price level

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