Author Question: When the economy is at its potential output level, which of the following is true? a. The price ... (Read 20 times)

mckennatimberlake · **on:** Jun 30, 2018

When the economy is at its potential output level, which of the following is true?
a. The price level is higher than that expected by workers.
b. The nominal wage is equal to the real wage.
c. The unemployment rate is about 14 percent.
d. The economy is producing its maximum sustainable output.
e. The actual price level is less than the expected price level.

Question 2

The money demand curve will shift when there is a change in the:
a. unemployment rate.
b. inflation rate.
c. money supply.
d. nominal interest rate.
e. price level.