-Based on the Data in the Table Above,at the Short-Run

question 139

Multiple Choice

$$\begin{array} { | c | c | c | c | } \hline \text { Price level } & \begin{array} { c } \text { Aggregate demand } \\\text { (trillions of 2005 } \\\text { dollars) }\end{array} & \begin{array} { c } \text { Short-run aggregate } \\\text { supply (trillions of } \\2005 \text { dollars) }\end{array} & \begin{array} { c } \text { Long-run aggregate } \\\text { supply (trillions of } \\\text { 2005 dollars) }\end{array} \\\hline 100 & 11 & 7 & 10 \\\hline 110 & 10 & 8 & 10 \\\hline 120 & 9 & 9 & 10 \\\hline 130 & 8 & 10 & 10 \\\hline 140 & 7 & 11 & 10 \\\hline\end{array}$$
-Based on the data in the table above,at the short-run equilibrium

• A) the unemployment rate is less than the natural unemployment rate.
• B) the unemployment rate is greater than the natural unemployment rate.
• C) money wage rates will rise in long-run.
• D) the economy is at full employment.

---

Definitions:

Efficient Means

A method or strategy that achieves a goal with the least possible waste of time and effort.

Face-To-Face Encounter

A direct interaction between two or more individuals in the same physical space.

Purchase Decision

The final decision made by consumers regarding what, when, and from whom to buy a product or service.

Data Transmission

The act of transferring data or information between devices or locations.