Question 1
The level of aggregate output that can be sustained in the long run without inflation is known as
◦ nominal output.
◦ real output.
◦ money output.
◦ potential output.
Question 2
If ________ equilibrium output ________, the price level rises.
◦ actual; is below potential GDP
◦ potential; is equal to actual GDP
◦ potential; exceeds actual GDP
◦ actual; exceeds potential GDP