Exhibit 11-2 -If the Actual Price Level in Exhibit 11-2 Exceeds the 11-2

question 139

Multiple Choice

Exhibit 11-2
-If the actual price level in Exhibit 11-2 exceeds the expected price level, then

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

---

Definitions:

Style Analysis

An investment strategy analysis tool used to understand the performance of a portfolio by identifying the factors contributing to its returns.

Fund Returns

The profit or loss on an investment over a specific period, often expressed as a percentage of the investment's initial value.

Asset Allocation

Asset allocation is an investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goals, risk tolerance, and investment horizon.

Information Ratio

A ratio used to measure the return of a portfolio or fund relative to its risk, often used to assess the skill of a portfolio manager.