Figure 9-2
Which of the following is true for the economy depicted in ?
a.
Potential output equals y1.
b.
It would be impossible for this economy to achieve an output greater than y1.
c.
When output y1 is achieved, the actual rate of unemployment will exceed the natural rate of unemployment.
d.
When output y1 is achieved, the actual rate of unemployment will be less than the natural rate of unemployment.
a
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The total lag for fiscal policy tends to be shorter than the total lag for monetary policy
a. True b. False Indicate whether the statement is true or false
Effective minimum-wage laws will most likely
a. increase demand for labor. b. create a surplus of labor. c. increase incomes for all unskilled workers. d. decrease incomes for all unskilled workers.