An aggregate output level lower than potential output means there will be: high

Question

An aggregate output level lower than potential output means there will be: high interest rates. high inflation. low unemployment. high unemployment. Social insurance programs are: government programs intended to protect families against economic hardships. private insurance policies to protect families from hardships caused by government actions. private insurance policies that cover gaps in government-provided health care. programs to help unemployed people have a social life. The largest source of federal tax revenues is: property taxes. personal income taxes. corporate income taxes. sales taxes. If the economy is at equilibrium below potential output, there is a(n) gap, and fiscal policy is appropriate. recessionary; expansionary inflationary; expansionary recessionary; contractionary inflationary; contractionary

Explanation / Answer

an aggregate output level lower than potential output means high unemployment because workers are more than abundant in supply and jobs are less than the available labor supply, nominal wages will fall over time, shifting the short-run aggregate supply curve to the right

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.