-The Data in the Above Table Show That When the |

question 370

Multiple Choice

$$\begin{array} { | l | l | l | l | } \hline \begin{array} { l } \text { Price } \\\text { level }\end{array} & \begin{array} { l } \text { A ggregate } \\\text { demand } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} & \begin{array} { l } \text { Short-run } \\\text { aggregate } \\\text { supply } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} & \begin{array} { l } \text { Long-run } \\\text { aggregate } \\\text { supply } \\\text { (trillions of } \\\text { 2005 dollars) }\end{array} \\\hline 140 & 4 & 8 & 7 \\\hline 130 & 5 & 7 & 7 \\\hline 120 & 6 & 6 & 7 \\\hline 110 & 7 & 5 & 7 \\\hline 100 & 8 & 4 & 7 \\\hline\end{array}$$
-The data in the above table show that when the price level is 120, the economy

• A) has a recessionary gap.
• B) is in a long-run macroeconomic equilibrium.
• C) will have falling money wage rates sometime in the future.
• D) has an inflationary gap.

---

Definitions:

Skokie, Illinois

A village in Illinois, known for a significant legal case involving a Nazi group's right to march, raising issues of free speech and community standards.

Accused of a Crime

The state or condition of being charged with a criminal offense by legal authorities.

Supreme Court

The highest federal court in the United States, endowed with the judicial power to interpret and apply the Constitution, thereby shaping the nation's laws and society.

Death Penalty

The death penalty is a legal punishment where a person is put to death by the state as a penalty for a crime.