The Figure Below Shows the Short-Run Aggregate Supply Curve of an Economy

question 44

Multiple Choice

The figure below shows the short-run aggregate supply curve of an economy. If the actual price level exceeds the expected price level, then:

• A) equilibrium output is likely to be Y₂ in the short run.
• B) equilibrium output is likely to be Y₁ in the short run.
• C) equilibrium output is likely to be Y₃ in the short run.
• D) potential output is greater than actual output.
• E) unemployment is above the natural rate.

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Definitions:

Brainstorming Tasks

Involves generating creative ideas and solutions within a group setting, without judgment or criticism during the initial phase.

Dominant Leader

An individual in a leadership position who exerts authority and control, often taking charge of decision-making processes.

Independent Contributions

Efforts or achievements made by individuals that stand on their own and contribute uniquely to a collective goal or project.

Brainstorming

A collaborative idea-generation process aimed at finding a solution for a specific problem by gathering a list of ideas spontaneously contributed by its members.