Author Question: According to the short-run aggregate supply curve, if output minus potential output equals zero, ... (Read 88 times)

gonzo233 · **on:** Jun 30, 2018

According to the short-run aggregate supply curve, if output minus potential output equals zero, then ________.

A) unemployment might be zero
B) inflation might be stable
C) expected inflation must be stable
D) price shocks must be zero
E) none of the above

Question 2

Along any IS curve

a. both government spending and expectations are fixed.
b. government spending and the price level may vary.
c. consumption and the price level are fixed.
d. both government spending and tax rates may vary.
e. all of the above