Suppose an economy is operating at its maximum sustainable output rate. Neither recession nor economic boom are present. Which of the following would be true?
a. The economy would be considered at full employment.
b. Actual GDP would exceed potential GDP.
c. Actual unemployment will be less than the natural rate of unemployment.
d. One hundred percent of the labor
a. The economy would be considered at full employment.
You might also like to view...
The short-run supply curve for the perfectly competitive firm is that part of the marginal cost curve that lies above the average fixed cost curve.
Answer the following statement true (T) or false (F)
Smartphones at Work In most departments, Macy's clerks are paid an hourly rate. As a consequence, they would prefer to spend the time goofing off than helping customers. The store developed a number of policies to combat this preference. For example,
supervisors roam the store breaking up congregations of employees who are gossiping. However, with the advent of smartphones, employees can pass the time surfing the web, playing games, or posting to social media. How can Macy's alter compensation so as to combat this new form of shirking?
The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
Demand is determined by how much suppliers are willing and able to produce.
Answer the following statement true (T) or false (F)