If aggregate expenditure is less than GDP, how will the economy reach macroeconomic equilibrium?
a. Inventories will decline, and GDP and employment will decline.
b. Inventories will rise, and GDP and employment will decline.
c. Inventories will decline, and GDP and employment will rise.
d. Inventories will rise, and GDP and employment will rise.
b. Inventories will rise, and GDP and employment will decline.
Economics
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The long-run Phillips curve is the relationship between
A) unemployment and the price level at full employment. B) unemployment and the inflation rate at the expected price level. C) inflation and unemployment when the economy is at full employment. D) inflation and real GDP at full employment. E) inflation and the expected inflation rate.
Economics
Explain what a model is
What will be an ideal response?
Economics