An above-full-employment equilibrium occurs when
A) aggregate demand decreases while neither the short-run nor long-run aggregate supply changes.
B) short-run aggregate supply decreases while neither aggregate demand nor long-run aggregate supply changes.
C) the equilibrium level of real GDP is greater than potential GDP.
D) the equilibrium level of real GDP is less than potential GDP.
C
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Long-run economic profits would most likely exist in which market structure?
A) monopoly, monopolistic competition, and oligopoly B) monopoly and monopolistic competition C) monopoly only D) monopoly and oligopoly
Which of the following is not a government transfer program?
a. unemployment compensation b. Social Security c. food stamps d. Medicare e. movement of soldiers to a different military base
The inflation rate is a:
a. percentage decrease in price level. b. percentage increase in price level. c. sustained increase in relative prices. d. sustained decrease in relative prices. e. sudden increase in the weighted average of all prices.
An important element that is excluded from U.S. poverty figures is:
A. interest income. B. earned income. C. in-kind transfers such as food stamps and housing assistance. D. income tax.