Macroeconomics, 10e (Parkin)Chapter 10 Aggregate Supply and Aggregate Demand68) In the above figure, the short-run aggregate supply curve is SAS and the aggregate demand curve is AD. An inflationary gap existsA) if the long-run aggregate supply curve is LAS1.B) if the long-run aggregate supply curve is LAS2.C) if the long-run aggregate supply curve is LAS3.D) All of the above answers are correct.Answer: ATopic: Inflationary GapSkill: AnalyticalQuestion history: Previous edition, Chapter 10AACSB: Analytical Skills69) In the above figure, if the economy is at point A, which of the following is true?A) Point A is the long-run equilibrium point.B) The economy is in a recession.C) Money wages can be expected to fall.D) The economy might be at point A as a result of a recent cut in the tax rate.Answer: DTopic: Short-Run Macroeconomic EquilibriumSkill: ConceptualQuestion history: Previous edition, Chapter 10AACSB: Analytical Skills70) In the above figure, if the economy is at point A, which of the following is true?A) There is a recessionary gap.B) There is an inflationary gap.C) Point A is the long-run equilibrium point.D) None of the above answers are correct.Answer: BTopic: Inflationary GapSkill: ConceptualQuestion history: Previous edition, Chapter 10AACSB: Analytical Skills71) The above figure depicts an economyA) with an inflationary gap.B) with a recessionary gap.C) producing at full employment.D) None of the above answers is correct.Answer: ATopic: Inflationary GapSkill: AnalyticalQuestion history: Previous edition, Chapter 10AACSB: Analytical Skills72) In the above figure, the short-run equilibrium will eventually adjust to a long-run equilibrium with aA) lower price level and smaller real GDPB) higher price leve...
