When an economy operates at its long-run potential output level,
a. aggregate demand will exceed aggregate supply in the goods and services market.
b. unemployment will decline to an abnormally low rate that cannot be sustained in the long run.
c. the actual rate of unemployment will exceed the natural rate of unemployment.
d. the natural and actual rates of unemployment will be equal.
D
You might also like to view...
Assuming that the part of the government's budget used for military expenditures reduces the amount available for consumption expenditures and that the benefits to military expenditures take longer to accrue than consumption expenditures, _____
decision-makers will _____. a. democratic; be biased against military spending b. democratic; be biased in favor of military spending c. autocratic; be biased in favor of consumption d. autocratic; be biased in favor of military spending
In real-world markets
a. economic efficiency is rare because making voluntary transactions is difficult b. economic efficiency is rare because Pareto improvements are difficult to make c. economic efficiency is best thought of as a continuum d. perfect competition is an impediment to economic efficiency e. every possible Pareto improvement is exploited
In the short run, the perfectly competitive firm will always earn an economic profit when
A) P = ATC. B) P > AVC. C) P = MC. D) P > ATC.
You earn $500 a month, currently have $200 in currency, $100 in your checking account, $2,000 in your savings accounts, $3,000 worth of illiquid assets and $1,000 of debt. You have
A) money = $300, annual income = $6,000, and wealth = $5,000. B) money = $2,300, annual income = $6,000, and wealth = $5,000. C) money = $300, annual income = $6,000, and wealth = $4,300. D) money = $200, annual income = $500, and wealth = $4,300.