This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: If an economy's actual GDP exceeds its potential GDP, _____. a. wages and prices must fall b. ... (Read 68 times)

dollx

  • Hero Member
  • *****
  • Posts: 558
on: Jun 30, 2018
If an economy's actual GDP exceeds its potential GDP, _____.
 a. wages and prices must fall
 b. self-correcting forces will shift the SRAS curve to the left
  c. self-correcting forces will shift the AD curve to the left
  d. inflation will occur when AD shifts to the left
 e. unemployment is likely to be unusually high

Question 2

An economy experiencing an expansionary gap:
 a. operates in an environment in which labor shortages drive up money wages, real wages, and prices.
  b. has an excess supply of labor due to rising money wages and prices.
 c. will self-correct as rising money wages decrease faster than rising prices.
 d. will experience rising money wages and prices but falling real wages.
 e. will have excessive involuntary unemployment.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

gcook

  • Sr. Member
  • ****
  • Posts: 343
Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

a


dollx

  • Member
  • Posts: 558
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

emsimon14

  • Member
  • Posts: 344
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

There are 60,000 miles of blood vessels in every adult human.

Did you know?

Fatal fungal infections may be able to resist newer antifungal drugs. Globally, fungal infections are often fatal due to the lack of access to multiple antifungals, which may be required to be utilized in combination. Single antifungals may not be enough to stop a fungal infection from causing the death of a patient.

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

Did you know?

To prove that stomach ulcers were caused by bacteria and not by stress, a researcher consumed an entire laboratory beaker full of bacterial culture. After this, he did indeed develop stomach ulcers, and won the Nobel Prize for his discovery.

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Specific Drugs and their Potential for Dependence Specific Drugs and their Potential for Dependence
Action potential conduction in unmyelinated axons. Action potential conduction in unmyelinated axons.
Meiosis involves two complete divisional operations forming four potential sex cells. Meiosis involves two complete divisional operations forming four potential sex cells.
Fall Velocity of Water Drops Fall Velocity of Water Drops
The action potential The action potential
An electron is accelerated from rest through a potential difference. After acceleration the ... An electron is accelerated from rest through a potential difference. After acceleration the ...
Video: Type of Transport - Active and Passive Processes

For a complete list of videos, visit our video library