When the Economy Is at Its Potential Output Level,which of the Following

question 120

Multiple Choice

When the economy is at its potential output level,which of the following is not true?

• A)Firms' and workers' expectations about the price level are realized.
• B)The nominal wage is a good measure of the expected real wage.
• C)The unemployment rate is about 2 percent.
• D)The economy is producing its maximum sustainable output.
• E)The actual price level equals the expected price level.

---

Definitions:

Hip Hop

A cultural movement that originated in the 1970s in the Bronx, New York, characterized by four key elements: rapping (MCing), DJing, graffiti art, and breakdancing.

Russell Simmons

An American entrepreneur and record executive, co-founder of the hip-hop music label Def Jam Recordings.

Narcolepsy

A long-standing disorder that causes significant daytime fatigue and sudden onset of sleep.

Irresistible Urge

A compelling, often uncontrollable desire to perform an act, frequently associated with obsessive-compulsive disorder.