When the economy is at its potential output level, which of the following is true?
a. The price level is higher than that expected by workers.
b. The nominal wage is equal to the real wage
c. The unemployment rate is about 14 percent.
d. The economy is producing its maximum sustainable output.
e. The actual price level is less than the expected price level.
d
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A rightward shift of long-run aggregate supply due to technology advances without any change in aggregate demand
A. increases the price level without any change in real GDP. B. results in a lower price level. C. will leave real GDP unchanged. D. increases the price level along with an increase in real GDP.
The table in the textbook shows that income elasticity of food in industrialized nations is
a. higher than in less industrialized nations b. negative c. income elastic d. lower than in less industrialized nations e. the same as in less industrialized nations because food is an essential good
In the market for a particular pair of shoes, Jena is willing to pay $75 for a pair while Jane is willing to pay $85 for a pair. The actual price that each has to pay for a pair of shoes is $65. What is the combined amount of consumer surplus of Jena and
Jane? A. $10 B. $30 C. $130 D. $215
Which case below best represents a case of price discrimination?
A. An insurance company offers discounts to safe drivers B. A major airline sells tickets to senior citizens at lower prices than to other passengers C. A professional baseball team pays two players with identical batting averages different salaries D. A utility company charges less for electricity used during "off-peak" hours, when it does not have to operate its less-efficient generating plants