30. When the economy is at its potential output level, which of the following is
ID: 1228329 • Letter: 3
Question
30. When the economy is at its potential output level, which of the following isnottrue?
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.
38. The aggregate supply curve reflects the relationship between the
a.
price of a particular good and the quantity supplied by all firms producing that good
b.
price of a particular good and the quantity supplied by the aggregate economy
c.
price level and the quantity of all goods supplied in the economy
d.
price level and the quantity purchased of all goods in the economy
e.
price level and investment spending
39. The short-run aggregate supply curve slopes upward because quantity supplied
a.
increases when cost per unit falls
b.
decreases when cost per unit falls
c.
increases when the price level increases
d.
increases when GDP decreases
e.
decreases as profit per unit increases
44. 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
45. In Exhibit 11-2, an expansionary gap would be represented by the distance
a.
Y2 - Y1
b.
Y3 - Y1
c.
Y2 - Y3
d.
P3 - P1
e.
P2 - P3
46. If the actual price level in Exhibit 11-2 is lower than 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 less than actual output
e.
unemployment is below the natural rate
48. Consider Exhibit 11-3. In this situation, long-run equilibrium would be established by a(n)
a.
increase of short-run aggregate supply to close the expansionary gap
b.
decrease of short-run aggregate supply to close the expansionary gap
c.
decrease of short-run aggregate supply to close the contractionary gap
d.
increase of short-run aggregate supply to close the contractionary gap
e.
rightward shift of the aggregate demand curve
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.
Explanation / Answer
30) ANS IS c.
The unemployment rate is about 2 percent.
38)ANS IS c.
price level and the quantity of all goods supplied in the economy
39) ANS IS c.
increases when the price level increases
YOU HAVEN'T PROVIDED EXHIBIT 11-2 AND 11-3
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