14 As the best measure of the size of economic fluctuations associated with a businesscycle, economists typically use

A.

the deviation of real GDP from nominal GDP.

B.

potential GDP.

C.

real GDP.

D.

the deviation of real GDP from potential GDP.

15 Prices and wages are considered"sticky" if

A.

their rates of increase and decrease are identical.

B.

they do not fully adjust to changes in demand and supply.

C.

as pricesincrease, wages increase by the same percentage.

D.

their rates of change are directly connected to the rate of change in unemployment.

16 At fullemployment GDP,

A.

the longrun aggregate supply curve is horizontal.

B.

the longrun aggregate supply curve is vertical.

C.

the longrun aggregate demand curve is horizontal.

D.

the longrun aggregate demand curve is vertical.