The U.S. employment-to-population ratio peaked in 2000 and in 2012 fell to 58 percent, a level not seen since the early 1980s. This fall in the employment-to-population ratio ________ the equilibrium quantity of labor and ________ potential GDP
A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases
D
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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.
The total amount of money that a government owes at a point in time is called:
A. a budget deficit. B. a budget surplus. C. public debt. D. national surplus.
Answer the following statement(s) true (T) or false (F)
1. Oligopolists use pricing policies that encourage newcomers to enter the market. 2. Vertical mergers are often subject to antitrust probes. 3. A price war that includes undercutting strategies will lower prices for consumers. 4. Oligopolists often experience large economic profits year after year. 5. Non-collusive oligopoly resembles a military campaign or poker game in some respects.
The following is budget information for a hypothetical economy. All data are in billions of dollars.YearGovernment SpendingTax RevenuesGDP1$1,100$1,000$10,00021,2501,40010,20031,4501,45010,50041,6001,50010,90051,8001,55011,200Refer to the above data. Assume that year 1 is the first year for this economy and year 5 is the current year. What is the public debt in this economy?
A. $250 billion B. $300 billion C. $100 billion D. $150 billion