If the economy were producing at its potential output, then the unemployment rate would be less than the target rate of unemployment.
Answer the following statement true (T) or false (F)
False
Potential output is the output that would materialize at the target rate of unemployment. If output is at potential, unemployment would be at the target rate.
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The roots of the European Union are in agreements within the coal and steel industries
Indicate whether the statement is true or false
Related to the Economics in Practice on page 666: Trade ________ comparative advantage of countries and ________ the efficiency of firms.
A. exploits; reduces B. inhibits; reduces C. inhibits; improves D. exploits; improves
Suppose India and France have the same PPF, shown in the figure above. Based on their current production points, India's most likely future PPF is ________ and France's most likely future PPF is ________
A) PPF1; PPF1 B) PPF2; PPF2 C) PPF0; PPF0 D) PPF2; PPF1 E) PPF1; PPF2
For producers, there is a cost to having flexibility. Carrying excess productive capacity can be an expensive way of overcoming short-run production bottlenecks
Indicate whether the statement is true or false