Suppose an economist stated that Brazil had achieved its potential GDP 2013. This would imply that at this level of real GDP, Brazil experienced
A) peak in its business cycle in 2013.
B) unemployment equal to zero.
C) inflation equal to zero.
D) full employment.
E) a negative Okun Ga
D
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Refer to Common Property I. Suppose the common property becomes privately owned. The owner behaves competitively and charges people an entrance fee for the right to use the property. The fee will be
The following questions refer to the accompanying diagram, which shows the benefits and costs associated with the use of a common property.
a. P1.
b. P2.
c. P2 - P1.
d. zero.
Marginal cost
A) increases as more is produced. B) remains constant as more is produced. C) decreases as more is produced. D) decreases as marginal benefits decrease.
All points below the budget line are
A) inferior to every point on the budget line. B) preferred to every point on the budget line. C) affordable. D) Answers A and C are correct.
Economic theory provides insights into the range of possibilities for cost relationships. Studies such as those by Blinder et al. provide insights into where, within that range, many firms operate
Thus, there is no real conflict between theory and reality, as some people might try to claim. Indicate whether the statement is true or false