Figure 12-2 -Refer to Figure 12-2. at Output Level Y_r

question 33

Multiple Choice

Figure 12-2
-Refer to Figure 12-2. At output level Y_r,

• A) potential output is greater than actual output.
• B) the expected price level equals actual price level.
• C) the actual unemployment rate is less than the natural rate of unemployment.
• D) aggregate demand will fall over time to restore equilibrium.

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Definitions:

Commercial Aircraft

Airplanes designed and built for the purpose of transporting passengers and cargo commercially, operated by airlines.

Derived Demand

The demand for a product or service that arises from the demand for another product or service.

Holiday Selling Season

A specific period within the year, often in late November and December, during which retailers experience a significant increase in sales due to holiday shopping.

Derived Demand

A demand for a commodity or service that arises from the demand for another commodity or service, for example, the demand for steel being derived from the demand for cars.