Multiple Choice
During a recession,
A) unemployment is below the natural rate
B) actual output is above potential output
C) both unemployment and the price level are too high
D) contractionary gaps may persist if wages are not very flexible
E) expansionary gaps may persist if wages are not very flexible
Correct Answer:
Verified
Correct Answer:
Verified
Q67: In constructing a short-run aggregate supply curve,we
Q200: An adverse supply shock could increase both
Q201: If an economy is at its potential
Q202: If the expected price level exceeds the
Q203: Exhibit 10-9 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB4914/.jpg" alt="Exhibit 10-9
Q204: If the economy were at its potential
Q206: A wage rate above what is necessary
Q207: Beneficial supply shocks include all of the
Q209: A nominal wage is<br>A)not above the legal
Q210: Whether aggregate supply shifts quickly or slowly