As Actual Output Falls Below the Potential Level in the Short

question 99

Multiple Choice

As actual output falls below the potential level in the short run,which of the following is most likely to occur?

• A)More resources will become unemployed.
• B)The price level will increase.
• C)Real GDP will increase.
• D)Nominal GDP will remain constant.
• E)The natural rate of unemployment will fall.

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