Refer to Figure 8.5. If the actual wage in this economy is represented by w2, employment in this economy is represented by

The idea that nominal wages are slow to adjust to changing economic conditions can explain the ________ slope of the short-run aggregate-supply curve.

a) upward b) downward c) horizontal d) vertical

The structural deficit or surplus is the

A) difference between actual government outlays and what would be government revenues if the economy were at full employment. B) difference between actual government outlays and actual government revenues. C) change in national debt that will result from current budgetary policies. D) actual government budget deficit or surplus minus expenditures for capital improvements. E) government budget deficit or surplus that would occur if the economy were at full employment.