Which of the following statement or statements are correct about potential GDP?
i. Actual real GDP equals potential GDP when the economy is at full employment.
ii. Real GDP can be less than potential GDP.
iii. When real GDP equals potential GDP, it also equals nominal GDP.
A) i only
B) ii only
C) ii and iii
D) i and ii
E) i, ii, and iii
D
You might also like to view...
An earnings test as it relates to Social Security implies
A. benefits are reduced by some predetermined amount for those who have not reached normal retirement age. B. the amount of money earned during the working life of an individual determines the amount of benefits received. C. family earnings determine the amount of benefits received. D. all of these answer options are correct.
Which of the following is NOT a reason for average costs to fall according to the learning curve?
A) Workers accomplish tasks more quickly after doing the task a few times. B) Managers schedule more efficiently over time. C) Engineers determine more accurately what tolerances can be used. D) Suppliers may become better able to produce the exact inputs the firm needs. E) Competing firms leave the industry as the learning firm becomes more efficient.
When there are unsustainable rapidly rising prices of some type of financial asset, such as stocks, we refer to this as a(n):
A. asset price bubble. B. bad-precedent problem. C. moral-hazard problem. D. liquidity trap.
The rate of interest affects agriculture because
A) A high interest rate suggests a stronger dollar which depresses farm export demand. B) A low interest rate lowers farm expenses. C) A high interest rate reduced the capitalized value of farmland. D) All of the above.