3. If the short-run macroeconomic equilibrium occurs with real GDP less than Y*, the economy isA) at its full-employment level of output.B) experiencing a recessionary gap.C) experiencing an inationary gap.D) threatened with an acceleration of ination.E) operating at full [email protected]

Short-run macroeconomic equilibrium occurs when:Question 3Answera.structural and frictional unemployment equal zero.b.the equilibrium lies on the long-run aggregate supply curve.c.aggregate demand and short-run aggregate supply intersect.d.A and B

6. Suppose Canada's economy is in a long-run equilibrium with real GDP equal to potential output.Now suppose there is a decrease in the Canadian price of all imported raw materials. In the shortrun, ________. In the long run, ________.A) real GDP and the price level both fall; real GDP is below its original level with a lower price levelB) real GDP and the price level both rise; real GDP is above its original level with a higher price levelC) real GDP and the price level both rise; real GDP returns to its original level with a higher price levelD) real GDP rises and the price level falls; real GDP and the price level return to their original levelsE) real GDP falls and the price level rises; real GDP is below its original level with a higher price

In long-run equilibrium, real GDP is equal to to Y*. At this point, the economy has __________.zero unemploymentnegative cyclical unemployment but positive frictional and structural unemploymentzero cyclical unemploymentpositive cyclical unemploymentunanswered

During an economic recession, when real GDP falls, unemployment usually               .Group of answer choicesfallsrisesstays the samefalls or rises

There has been a decrease in investment. As a result, real GDP will ________ in the short run, and ________ in the long run.Question 6Answera.decrease; increase to its initial levelb.increase; increases furtherc.decrease; decrease furtherd.increase; decrease to its initial value