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

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]

n the AD-AS model, long-run equilibrium occurs when: output is above potential GDP. aggregate demand equals short-run aggregate supply. output is below potential GDP. aggregate demand equals short-run aggregate supply and they intersect at a point on the long-run aggregate supply curve. unemployment equals zero.

Macroeconomic equilibrium occurs at a point where:Question 38Select one:a.Aggregate Demand is more than Aggregate Supplyb.Aggregate Demand is increasing and Aggregate Supply is decreasing.c.Aggregate demand is decreasing and Aggregate Supply is increasing.d.Aggregate Demand is less than Aggregate Supply.e.Aggregate Demand is equal to Aggregate Supply.

The economy is initially at its long-run equilibrium. A diplomatic dispute with its trading partner countries now leads to a decline in its exports. In the short run, the aggregate demand curve shifts left. In the long run, the price level decreases, the output returns to its potential, and real wages decrease. In the short run, the aggregate demand curve shifts right. In the long run, the price level increases, the output returns to its potential, and real wages do not change. In the short run, the aggregate demand curve shifts right. In the long run, the price level increases, the output returns to its potential, and real wages increase. In the short run, the aggregate demand curve shifts right. In the long run, the price level increases, the output returns to its potential, and real wages decrease. In the short run, the aggregate demand curve shifts left. In the long run, the price level decreases, the output returns to its potential, and real wages do not change.

When the economy experiences a permanent positive supply side shock that shifts the long-run aggregate supply to the right, the short run aggregate supply curve: Question 2Select one:A.Will begin by shifting left, and then be pulled right by the long-run aggregate supply over time.B.None of these adjustments will occur.C.Will gradually shift right until it reaches long-run aggregate supply and the new long-run equilibrium.D.Will instantly shift right with the long-run aggregate supply to the new long-run equilibrium.