Asked by
Breanna Cathcart
on Nov 11, 2024Verified
As actual output falls below the potential level in the short run,which of the following is most likely to occur?
A) More resources will become unemployed.
B) The price level will increase.
C) Real GDP will increase.
D) Nominal GDP will remain constant.
E) The natural rate of unemployment will fall.
Potential Level
The capacity of an economy to produce goods and services when at full employment, indicating the maximum sustainable output level.
Actual Output
The quantity of goods and services produced within an economy at a specific period, reflecting the economy's current production level.
Resource Unemployment
Refers to the state where economic resources are not being used to their full potential, contributing to less-than-optimal output or employment.
- Discuss the repercussions of resource price changes on the equilibrium in economics.
- Examine the repercussions of a discrepancy between potential and actual output.
Verified Answer
PT
Learning Objectives
- Discuss the repercussions of resource price changes on the equilibrium in economics.
- Examine the repercussions of a discrepancy between potential and actual output.