Use the Following to Answer Questions

question 133

Multiple Choice

Use the following to answer questions .
Exhibit: Using the Aggregate Demand/Aggregate Supply Model 2
-(Exhibit: Using the Aggregate Demand/Aggregate Supply Model 2) At output level Y_K,

• A) the economy is not in equilibrium because it operates with an output gap.
• B) the economy is in short-run equilibrium and it operates with an inflationary gap.
• C) the economy is in short-run equilibrium and it operates with a recessionary gap.
• D) the economy is not in equilibrium because the unemployment rate is below the natural rate of unemployment.

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Definitions:

Geological Strata

Layers of sedimentary rock or soil with internally consistent characteristics that distinguish them from adjacent layers.

Primitive

Referring to the early and undeveloped stage in the evolution of something.

Codiscoverer

An individual who, along with one or more others, is credited with the discovery of something.

Natural Selection

The process whereby organisms better adapted to their environment tend to survive and produce more offspring.