When the inflationary gap is finally eliminated, a long-run equilibrium is established with a ____ price level and with GDP ____ potential GDP
a. higher; equal to
b. higher; greater than
c. lower; equal to
d. lower; greater than
a
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Use the following table to answer the question below.(1)(2)(3)(4)(5)QdQdPriceQsQs5040$1070806050960708060850609070740501008063040Suppose that market demand is represented by two demanders in columns (1) and (2) and market supply is represented by two suppliers in columns (4) and (5). If the price were artificially set at $9
A. a surplus of 20 units would occur. B. demand would change from columns (3) and (2) to columns (3) and (1). C. the market would clear. D. a shortage of 20 units would occur.
All of the following statements are examples of positive economic analysis except
A) as the unemployment rate decreases, fewer people are willing to relocate to find jobs. B) as the economy improves, more workers from other countries are migrating to the United States. C) exports from the United States should be increased to offset the growing number of imports into the United States. D) the U.S. economy is growing at a slower rate than the economy of Brazil.
Macroeconomic equilibrium occurs when
A) there is no inflation. B) real GDP is equal to potential GDP. C) the aggregate quantity demanded is equal to the aggregate quantity supplied. D) the economy is fully employed. E) the price level equals the potential price level.
________ refers to the overall political and financial situation of a country, and the extent to which these conditions may affect the ability of a country to repay its debts
A) Debt-rescheduling B) IMF conditionality C) Country risk D) International debt