Potential GDP is the level of aggregate output ?

Related Mcqs:

The classical model of macroeconomics assumes ?

A. wages and prices are sticky B. wages and prices are flexible C. the economy may operate below full capacity D. the economy is always at full capacity E. A and C F. B and D...

If a person thinks they are better off after a 10% wage increase, and all prices have risen 10% then they are experiencing ?

A. inflation B. a supply shock C. crowding out D. inflation illusion...

Doubts about the natural and the existences of the Phillips curve arose in the 1970s when the economy experienced ?

A. a high rate of inflation: along with a low rate of unemployment B. simultaneously low rates of inflation and unemployment C. simultaneously high rates of inflation and unemployment D. a high rate of unemployment along with a low rate of inflation...

When economists use the term real business cycle theory they are suggesting that business cycles are caused by ?

A. Shifts in aggregate supply B. changes in export demand due to the state of the world economy C. business confidence D. business expectations...

The relative-wage explanation for the existence of downwardly sticky wages emphasizes ?

A. the contention that workers in one industry may be unwilling to accept a wage cut unless they know that workers in other industries are receiving similar cuts B. employment contracts that stipulate workers’ wages usually for a period of one to three years C. unspoken agreements between workers and firms that firms will not … The relative-wage explanation for the existence of downwardly sticky wages emphasizes ?Read More...