The real output of the economy under conditions of full employment
A) is long-run aggregate demand. B) is long-run aggregate supply.
C) happens only when there is no inflation. D) is determined by the real-balance effect.
B
You might also like to view...
Efer to the above figure. Suppose the economy's initial equilibrium is represented by the intersection of LRAS 2 and AD 2. Now there is an increase in labor productivity which increases total planned production at any given price level and aggregate demand remains stable. The resulting change in the economy's long-run equilibrium position would be represented by a
A. Movement from A to B B. Movement from B to D C. Movement from C to B D. Movement from C to D
The welfare loss created by monopolistically competitive markets:
A. is a hotly debated topic among economists. B. is a huge concern to governments. C. has a widely accepted form of measurement. D. is usually not a huge concern to governments.
Which of the following is one of the reasons economists sometimes differ in their views on social policy?
A. Different models focus on different aspects of a problem. B. Economists' subjective value judgments tend to be very similar. C. Empirical evidence is so precise that there is little room for different interpretations. D. Most so-called economists have received no formal training.
The federal government began officially measuring poverty in the
A) 1860s. B) 1900s. C) 1980s. D) 1960s.