The mathematical equation: quantity of output supplied = natural rate of output + a(actual price level - expected price level), expresses
a. how the long run equilibrium adjusts to changes in money supply.
b. how output deviates in the short run from its long run natural rate.
c. how the short run aggregate supply curve shifts.
d. how adverse shifts in aggregate supply can cause stagflation.
b
You might also like to view...
People who are not employed and are not actively looking for work, because they are fairly certain they could not find a satisfactory job, are counted by the BLS as
A) involuntarily employed. B) neither employed nor unemployed. C) unemployed members of the labor force. D) voluntarily unemployed.
Results of the ultimatum game indicate that most people value fairness enough that they will refuse to participate in a transaction they consider unfair, even if they are worse off financially as a result
Indicate whether the statement is true or false