Suppose the Economy Is at a Short-Run Equilibrium GDP That

question 242

Multiple Choice

Suppose the economy is at a short-run equilibrium GDP that lies above potential GDP.Which of the following will occur because of the automatic mechanism adjusting the economy back to potential GDP?

• A)Output will increase.
• B)Prices will decline.
• C)Unemployment will decline.
• D)Wages will rise.
• E)The exchange rate will rise.

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Steady Progression

The consistent and gradual advancement or development in a particular project, skill, or process over time.

Different Font Sizes

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