The data in the above table show that when the price level is 120, the economy
A) is in a long-run macroeconomic equilibrium.
B) has an inflationary gap.
C) has a recessionary gap.
D) will have falling money wage rates sometime in the future.
C
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To an economist, the term "needs"
A) means the purchase of necessary goods. B) is objectively undefinable. C) identifies the purchases of basic goods and services. D) refers to the purchase of goods by the poor.
Diseconomies of scale cause the short-run marginal cost curve to slope upwards
a. True b. False Indicate whether the statement is true or false
Among the following pairs, which is likely to have the greatest price elasticity of demand? Why?
a. cars or Toyotas b. electricity usage during a month or during a year c. cable television or an apartment rental
If a perfect competitor faces P = ATC in the long run, the firm will
A) earn economic profits. B) earn economic losses. C) leave the industry. D) remain in the industry.