Which of the following is true when an economy is in long-run equilibrium?
a. Actual output can exceed potential output
b. Potential output can exceed actual output.
c. Actual output must equal potential output.
d. Real GDP must equal nominal GDP.
e. Expected price level can exceed actual price level.
c
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Asset prices in an economy are likely to fall if ________
A) firms' revenues rise B) labor supply falls C) labor demand increases D) investment falls
What is the most accurate description of skilled and unskilled workers if labor supply curves are not perfectly inelastic (perfectly vertical)?
a. If the two types are complements, then the increases in immigration during the late 1800s would have increased the quantity and wages of skilled workers and decreased the wages of unskilled workers. b. If the two types are substitutes, then the increases in immigration during the late 1800s would have increased the quantity and wages of skilled workers and decreased the wages of unskilled workers. c. If the two types are complements, then the increases in immigration during the late 1800s would have increased wages of skilled workers, decreased the number of skilled workers, and decreased the wages of unskilled workers.
A limit on the quantity of a good that may be imported in a given time period is a:
A. Trade restriction limit. B. Tariff. C. Quota. D. Price effect.
A change in the interest rate:
A. has a larger impact on the present value of a payment to be made far into the future than on one to be made sooner. B. has a smaller impact on the present value of a payment to be made far into the future than on one to be made sooner. C. will not make a difference in the present values of two equal payments to be made at different times. D. has a larger impact on the present value of a bigger payment to be made far into the future than on one of lesser value.