When the economy is at its potential output level,which of the following is not true?
A)Firms' and workers' expectations about the price level are realized.
B)The nominal wage is a good measure of the expected real wage.
C)The unemployment rate is about 4 to 6 percent.
D)The economy is producing the maximum output it can produce in short periods of time; however,such a fast pace could not be maintained for long.
E)The actual price level equals the expected price level.

Question

Quizplus · Accepted Answer

When the economy is at its potential output, it is producing at a sustainable level, not at a maximum output that cannot be maintained for long.

When the Economy Is at Its Potential Output Level,which of the Following