In the above figure, if the economy is in equilibrium at E1, then
A) the economy is producing below its potential long-run equilibrium at full employment.
B) the economy is producing above its potential long-run equilibrium at full employment.
C) there is an inflationary gap in the economy.
D) the economy is in a period of high inflation.
A
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a. True b. False Indicate whether the statement is true or false
Which of the following is the best example of an investment in human capital?
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