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:

Labor-force Participation Rate

The percentage of the working-age population that is either employed or actively seeking employment, indicating the level of active engagement in the labor market.

Labor Data for Tajnia

Statistical information related to the workforce of Tajnia, including employment rates, wages, and types of employment.

Adults Employed

The segment of the labor force composed of individuals, typically 18 years and older, who are currently employed.

Adults Unemployed

Individuals over the working age who are without jobs and actively seeking employment.