ECON-1012-B-Introduction to Macroeconomics Course Materials & Test Answers | moodle.uleth.ca

Short Description: A graph of price level versus real G D P. Long Description: The vertical axis is labelled, price level (G D P deflator, 20 12 = 100) and ranges from 60 to 110 in increments of 10 with a kink near the origin. The horizontal axis is labelled, real G D P (billions of 20 12 dollars) and ranges from 320 to 520 in increments of 40 with a kink near the origin. The line for S A S slopes upward from the lower left corner to the upper right corner passing through the points (340, 70) and (400, 85). The line for A D slopes downward from the upper left corner to the lower right corner, passing through the points (360, 100), (400, 85), and (440, 70). The line for L A S is a vertical line from the point (440, 0) on the horizontal axis passing through the point (440, 70).

Figure 10.3.1

Refer to Figure 10.3.1, which shows the AS-AD model in which an economy is in short-run macroeconomic equilibrium. Which of the following statements (1) and (2) is correct and which is incorrect?

(1)	The economy is at a below full-employment equilibrium.

(2)	The actual unemployment rate equals the natural unemployment rate.

(1) is correct; (2) is incorrect.

100%

(1) and (2) are correct.

(2) is correct; (1) is incorrect.

(1) is correct; (2) is correct if the natural unemployment rate is too high.

(1) and (2) are incorrect.

View this question

Crowdly

ECON-1012-B-Introduction to Macroeconomics

Want instant access to all verified answers on moodle.uleth.ca?