an article in the Economist magazine noted that: "the economy's potential to supply goods and services [is] determined by suc

Question

3 years ago

8

an article in the Economist magazine noted that: "the economy's potential to supply goods and services [is] determined by suc

h 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.

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1 answer:

svetoff [14.1K] · Answer 1 · 2022-02-27T10:11:47+03:00

svetoff [14.1K]3 years ago

8 0

Answer:

B. incorrect since changes in the expected price level affect short run aggregate supply but not the long run aggregate supply

an article in the Economist magazine noted​ that: ​"the economy's potential to supply goods and services​ [is] determined by suc

an article in the Economist magazine noted that: "the economy's potential to supply goods and services [is] determined by suc