When prices in the goods and services market are below the level anticipated,
a. output will temporarily exceed the economy's long-run potential.
b. output will temporarily fall short of the economy's long-run potential.
c. output will be equal to the economy's long-run potential.
d. the actual rate of unemployment will be less than the natural rate of unemployment.
B
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Decreased investment spending in the economy would be a possible result of
A) an open market sale of bonds by the Fed. B) an increase in the money supply. C) an open market purchase of bonds by the Fed. D) a decrease in interest rates.
Technology grows at a rate of three percent in an economy in which ten percent of the workforce is engaged in research and development, where their productivity is 0.003
The economy is on a balanced growth path, and the workforce is growing at two percent. Calculate the growth rates of output, capital, and output per worker now, and five years from now.
An unhealthy person would likely choose a medical insurance policy with a
a. low premium and a high deductible. b. high premium and a high deductible. c. high premium and no deductible. d. The unhealthy person would choose not to be insured.
Which of the following is a long-run impact of an increase in the wage?
A. The quantity demanded of labor increases because there are no diminishing returns. B. The quantity demanded of labor increases because the marginal revenue product curve shifts upward due to a higher product price. C. The quantity demanded of labor decreases because firms face a higher degree of diminishing returns. D. The quantity demanded of labor decreases because firms will have an incentive to use more of other inputs instead of labor.