an article in the Economist magazine noted that: "the economy's potential to supply goods and services [is] determined by such things as labour force and capital stock, as well as inflation expectations." Source:"Money's Muddled Message" Economist , May 19, 2009. This list of the determinants of potential GDP is A. correct since changes in the expected price level affect both the short run and the long run aggregate supply. B. incorrect since changes in the expected price level affect short run aggregate supply but not the long run aggregate supply. C. correct since changes in the expected price level affect short run aggregate supply which in turn determines potential GDP. D. incorrect since changes in the expected price level do not affect aggregate supply.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “an article in the Economist magazine noted that: "the economy's potential to supply goods and services [is] determined by such things as ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Even after the US Environmental Protection Agency discovered that 482,000 VW diesel cars on American roads were emitting up to 40 times more toxic fumes than permitted, VW executives continued to deny that VW installed software designed to cheat on
Answers (1)
A holder is a person who is in possession of a negotiable instrument that is
Answers (1)
A manager chooses to ignore a rigorous decision-making process and selects TV monitor A over monitor B because he "trusts" company A more than company B. If the decision he made was rational, which of the following is true? a.
Answers (1)
You resent having friends or members of your family tell you what to do
Answers (1)
In 2013, approximately how much were consumers expected to spend on digital music?
Answers (1)
New Questions in Business
A county accounts for its debt service payments in the General Fund. The amount of unmatured, unpaid interest on general long-term liabilities at the beginning of the year was $122,000 (listed on the LTL Schedule). The ending balance was $165,000.
Answers (1)
The demand function for a certain make of ink-jet cartridge is the following where p is the unit price in dollars and x is the quantity demanded each week, measured in units of a thousand. $ p = - {/color{black}0.07} x^2 - {/color{black}0.
Answers (1)
Do you think I could ever start a band?
Answers (2)
g. Kings Donut Inc common stock sells for $39.86 a share at a market rate of return of 9.5%. The company just paid its annual dividend of $1.20. What is the rate of growth of its dividend? Assume stock is in equilibrium.
Answers (1)
Jason Jewelers reported the following in its statement of cash flows: Net cash provided by operating activities $140,000 Net cash provided by investing activities 120,000 Net cash used by financing activities 150,000.
Answers (1)