Author Question: Which of the following is true when an economy is in long-run equilibrium? a. Actual output can ... (Read 52 times)

jon_i · **on:** Jun 30, 2018

Which of the following is true when an economy is in long-run equilibrium?
a. Actual output can exceed potential output.
b. Potential output can exceed actual output.
c. Actual output must equal potential output.
d. Real GDP must equal nominal GDP.
e. Expected price level can exceed actual price level.

Question 2

The Fed can close a recessionary gap by:
a. increasing fiscal expenditure.
b. increasing taxes.
c. decreasing taxes.
d. selling U.S. government bonds.
e. lowering the discount rate.