The figure below shows the short-run aggregate supply curve of an economy.If the actual price level exceeds the expected price level,then:

A)equilibrium output is likely to be Y2 in the short run.
B)equilibrium output is likely to be Y1 in the short run.
C)equilibrium output is likely to be Y3 in the short run.
D)potential output is greater than actual output.
E)unemployment is above the natural rate.

Question

The figure below shows the short-run aggregate supply curve of an economy.If the actual price level exceeds the expected price level,then:

​
A)equilibrium output is likely to be Y2 in the short run. 
B)equilibrium output is likely to be Y1 in the short run. 
C)equilibrium output is likely to be Y3 in the short run. 
D)potential output is greater than actual output. 
E)unemployment is above the natural rate.

Quizplus · Accepted Answer

The Answer of The figure below shows the short-run aggregate supply curve of an economy.If the actual price level exceeds the expected price level,then:

​
A)equilibrium output is likely to be Y2 in the short run. 
B)equilibrium output is likely to be Y1 in the short run. 
C)equilibrium output is likely to be Y3 in the short run. 
D)potential output is greater than actual output. 
E)unemployment is above the natural rate.

The Figure Below Shows the Short-Run Aggregate Supply Curve of an Economy.If