Given the information in the above table, the relationship between x and y is
A) positive, and the curve becomes flatter as x increases.
B) positive, and the curve becomes steeper as x increases.
C) positive and linear.
D) negative and linear.
Question 2
The long-run aggregate supply curve is vertical at 16 trillion but the short-run aggregate supply curve intersects the aggregate demand curve at 17 trillion. We know that
A) the economy is producing below full employment in the short run, and will adjust by hiring more workers, thus decreasing unemployment.
B) the price level is too high. The long-run equilibrium will occur with a lower price level.
C) adjustments will occur so that the long-run aggregate supply equals 17 trillion.
D) adjustments will occur so that the short-run aggregate supply eventually intersects the aggregate demand curve at 16 trillion.
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