In the Keynesian model, if the actual price level is higher than the expected price level, then
a. output is above potential output.
b. output is always at potential output.
c. output is below potential output.
d. output is moving towards potential output.
C
Economics
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An economic profit of zero implies: a. normal profit
b. the firm is covering both explicit and implicit costs. c. the firm's revenues are sufficient to compensate the money and time that the owners put into the business. d. all of the above
Economics
Answer the following questions true (T) or false (F)
1. New Keynesian macroeconomic theory emphasizes the role of "sticky" prices in the economy. 2. Centrally planned economies tend to grow more quickly than market economies. 3. Accumulating a greater number of inputs will ensure that an economy will experience economic growth.
Economics