Suppose that the economy is in a position of short-run equilibrium at a point where real GDP is below the full-employment level. Assuming no further change in aggregate demand and self-correction, the movement to a new long-run equilibrium includes a decrease in which of the following?
a. The unemployment rate
b. The price level (CPI).
c. The level of nominal wages and salaries.
d. All of the above.
d
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If a country lends more to foreign countries than it borrows from foreign countries in a year, then definitely during that year
A) it has a current account deficit. B) it is a creditor nation. C) it is a debtor nation. D) it is a net lender.
In the accelerator theory the
A) smaller the desired capital-output ratio the larger will be net investment. B) smaller the desired capital-output ratio the larger will be replacement investment. C) larger the desired capital-output ratio the larger will be net investment. D) larger the desired capital-output ratio the smaller will be replacement investment.
Refer to Scenario 10.2. Suppose that a tax of $5 for each unit produced is imposed by state government. What is the profit maximizing level of output?
A) 0 B) 90 C) 95 D) 100 E) none of the above
Roughly 60 percent of women participate in the labor force today
a. True b. False Indicate whether the statement is true or false