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Exhibit 10-3 -In Exhibit 10-3,at Income Level Y2

Question 1

Multiple Choice

Exhibit 10-3 Exhibit 10-3 -In Exhibit 10-3,at income level Y<sub>2</sub> A) potential output is greater than actual output B) there is a contractionary gap C) the price level will fall D) the actual unemployment rate equals the natural rate of unemployment E) aggregate supply will increase to restore equilibrium
-In Exhibit 10-3,at income level Y2


A) potential output is greater than actual output
B) there is a contractionary gap
C) the price level will fall
D) the actual unemployment rate equals the natural rate of unemployment
E) aggregate supply will increase to restore equilibrium

Correct Answer:

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