The Economy Cannot Remain Indefinitely with Real GDP Greater Than

question 92

Multiple Choice

The economy cannot remain indefinitely with real GDP greater than potential GDP because the money wage rate will

• A)increase, shifting the LAS curve leftward.
• B)decrease, shifting the SAS curve rightward.
• C)increase, shifting the SAS curve rightward.
• D)increase, shifting the SAS curve leftward.
• E)decrease, shifting the LAS curve rightward.

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Definitions:

Probability Distribution

A mathematical description of the likelihood of occurrence of different possible outcomes in an experiment.

Random Variable

A variable whose outcomes are determined by a random phenomenon or process.

Probability Distribution

A mathematical function that provides the probabilities of occurrence of different possible outcomes for an event.

E(XY)

The expected value of the product of two random variables, X and Y, representing a measure of their joint variability.