At a peak in the business cycle, the macroeconomic equilibrium is ________ the level of potential real GDP
A) greater than
B) equal to
C) less than
D) falling below
E) None of the above answers is always correct because the relationship depends on whether the previous phase of the business cycle had been a recession or an expansion.
A
You might also like to view...
A perfectly competitive firm has a random marginal cost with a 50 percent chance of a high marginal cost of $10, a 30 percent chance of a marginal cost of $8, and a 20 percent chance of a low marginal cost of $5. What is the firm's expected marginal cost?
A) $7.80 B) $8.00 C) $9.20 D) $8.40
Like the debt of many families, the national debt in 2014 was many times larger than the national income
a. True b. False Indicate whether the statement is true or false
The short-run model makes use of the , which assumes that private consumption expenditure is sensitive to changes in current income.
a. Pareto-optimal condition b. consumer sovereignty model c. Keynesian consumption function d. consumption-smoothing model
If workers underestimate inflation, the aggregate supply curve will tend to be
A. upward sloping. B. downward sloping. C. vertical. D. horizontal.