The natural rate of output is the amount of real GDP produced
A. when the economy is at the natural rate of aggregate demand.
B. when the economy is at the natural rate of unemployment.
C. when the economy is at the natural rate of investment.
D. when there is no unemployment.
Answer: B. when the economy is at the natural rate of unemployment.
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After the Fed raises the federal funds rate, the effects on the economy can take up to two years before they occur. Is this statement accurate? Lay out the time path of how an increase in the federal funds rate affects the economy
What will be an ideal response?
Structural unemployment exists when
A. the government decides who is unemployed. B. there are too few workers to fill available jobs. C. there is a mismatch between worker skills and employer needs. D. the construction industry lays workers off.
The costs to firms of changing prices are called
A) redistribution costs. B) menu costs. C) anticipation costs. D) money illusion costs.
A surplus will occur if a ________ is set ________ the equilibrium price.
A. price floor; above B. price floor; below C. price ceiling; below D. price ceiling; above