If equilibria below potential output are self-correcting, the economy will spend a great deal of time on the horizontal part of the aggregate supply curve.
Answer the following statement true (T) or false (F)
False
You might also like to view...
A production possibilities curve is downward sloping because of
a. the law of increasing costs b. the finite nature of the resource base c. inefficiency d. improper output mix e. unemployment
An increase in the number of students attending college would tend to
a. reduce the demand for college professors. b. decrease the number of college professors employed. c. increase the demand for college professors. d. reduce the wage for college professors.
The ________ phase of the business cycle follows a recession
a. recession b. peak c. expansion d. trough
Samuelson and Solow argued that
a. high unemployment puts upward pressures on wages and prices. b. given the historical evidence, a combination of low inflation and low unemployment was not possible. c. Both A and B are correct. d. None of the above are correct.