Refer to Exhibit 9-2. The economy is currently producing Q1. At this level of Real GDP, the economy is experiencing

a. a shortage in the labor market.
b. a surplus in the labor market.
c. neither a shortage nor a surplus in the labor market.
d. all of the above are equally likely


Ans: a. a shortage in the labor market.

Economics

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Answer the following statement true (T) or false (F)

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The Fed usually prefers the inflation rate to hover around ________

A) 6% B) 10% C) 2% D) 5%

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If inventories decline by more than analysts predict they will decline, this implies that

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Economics