If Equilibrium GDP Is Below Potential,then

question 156

Multiple Choice

If equilibrium GDP is below potential,then

• A) unemployment is unusually low
• B) the Fed will lower the money supply
• C) the wage rate will fall as workers compete for scarce jobs
• D) the aggregate supply curve will shift leftward
• E) the wage rate will remain stable as labor productivity increases

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Definitions:

New Brunswick

A maritime province in eastern Canada, known for its forested landscape, rivers, and coastal regions along the Atlantic Ocean.

Nova Scotia

A province located on Canada’s Atlantic coast, known for its maritime heritage, natural beauty, and cultural diversity.

Marine Fish Populations

The total numbers of fish living in the ocean, which can vary by species and are affected by environmental factors.

Optimum Sustained Yield

The maximum level at which a natural resource can be routinely used without long-term depletion.