In Macroland, potential output equals $100 trillion and the natural rate of unemployment is 4 percent. If the actual unemployment rate is 5 percent, then real GDP must be:
A. $96 trillion.
B. $104 trillion.
C. $98 trillion.
D. $102 trillion.
Answer: C
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When total utility is at a maximum, marginal utility is:
a. zero. b. positive. c. negative. d. one. e. infinite.
Which of the following is true? a. A nation cannot have a comparative advantage in the production of every good
b. A nation cannot have an absolute advantage in the production of every good. c. A nation can have a comparative advantage in the production of every good, but not an absolute advantage. d. A nation can have a comparative advantage in the production of a good only if it also has an absolute advantage.
Producer surplus measures the benefit to sellers from receiving a price above their costs
a. True b. False Indicate whether the statement is true or false
A maximum legal price that may be charged for a particular good or service is known as a
A. black market. B. price ceiling. C. price floor. D. price support.