The price of furnace filters increased by 5 percent and the quantity demanded did not change. The price elasticity of demand for furnace filters is

During an inflationary gap,

A) the aggregate demand curve and the aggregate supply curve intersect at a level of real GDP that exceeds potential GDP. B) the aggregate demand curve and the aggregate supply curve intersect at potential GDP. C) the aggregate demand curve and the aggregate supply curve do not intersect. D) real GDP is less than potential GDP. E) the price level will fall to restore the long-run equilibrium.

When wage rates rise the short-run aggregate supply curve shifts to the right

Indicate whether the statement is true or false