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Figure 8-5 Panel (A) Shows an Economy's Aggregate Production

Question 44

Multiple Choice

Figure 8-5 Figure 8-5   Panel (a)  shows an economy's aggregate production function, Panel (b)  shows the labor market and Panel (c)  shows the economy's long-run aggregate supply curve. -Refer to Figure 8-5. The economy could achieve its potential output at a price level- nominal wage combination of A)  1.5 and $60,000. B)  1.0 and $50,000. C)  1.0 and $45,000 D)  0.5 and $30,000. Panel (a) shows an economy's aggregate production function, Panel (b) shows the labor market and Panel (c) shows the economy's long-run aggregate supply curve.
-Refer to Figure 8-5. The economy could achieve its potential output at a price level- nominal wage combination of


A) 1.5 and $60,000.
B) 1.0 and $50,000.
C) 1.0 and $45,000
D) 0.5 and $30,000.

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