Exhibit 10.1

-Refer to Exhibit 10.1, which shows the short-run aggregate supply curve of an economy. If the actual price level exceeds the expected price level, then _____
A) the equilibrium output is likely to be Y₂ in the short run.
B) the equilibrium output is likely to be Y₁ in the short run.
C) the 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

Exhibit 10.1
 
-Refer to Exhibit 10.1, which shows the short-run aggregate supply curve of an economy. If the actual price level exceeds the expected price level, then _____
A) the equilibrium output is likely to be Y₂ in the short run. 
B) the equilibrium output is likely to be Y₁ in the short run. 
C) the 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 Exhibit 10.1
 
-Refer to Exhibit 10.1, which shows the short-run aggregate supply curve of an economy. If the actual price level exceeds the expected price level, then _____
A) the equilibrium output is likely to be Y₂ in the short run. 
B) the equilibrium output is likely to be Y₁ in the short run. 
C) the 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.

Exhibit 10.1 -Refer to Exhibit 10.1, Which Shows the Short-Run Aggregate Supply