Suppose at a particular level of real gross domestic product (GDP), there are no unintended inventory adjustments. In this context, which of the following is true?
a. Real GDP is less than the equilibrium level of real GDP demanded.
b. Real GDP is greater than the equilibrium level of real GDP demanded.
c. Real GDP equals the equilibrium level of real GDP demanded
d. At equilibrium real GDP, there is no inflation.
e. At equilibrium real GDP, there is no saving.
c
You might also like to view...
The aggregate demand curve in the figure above shifts rightward if
A) potential GDP increases. B) the money wage rate falls. C) taxes are raised. D) government expenditure increases. E) the Federal Reserve raises the interest rate.
With an increase in the demand for a good, if prices are not allowed to increase:
A) social surplus will be maintained at maximum. B) there will be no incentive for firms to increase the quantity supplied of the good. C) a surplus will occur in the market. D) there will be an increase in overall efficiency in the market.
Supporters of national health insurance:
a. see health care as a fundamental right b. believe that the best way to ration health care is through competitive markets c. both of the above d. neither of the above
The U.S. tax burden is high compared to many European countries
a. True b. False Indicate whether the statement is true or false