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.
Correct Answer:
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