The economy is currently operating at a point on its physical production possibilities frontier (physical PPF). It is
A) producing Natural Real GDP and operating below the natural unemployment rate.
B) producing more than Natural Real GDP and operating above the natural unemployment rate.
C) producing more than Natural Real GDP and operating below the natural unemployment rate.
D) in long-run equilibrium.
C
You might also like to view...
Which of the following characterizes the largest difference between the way decisions are made in the private sector versus the public sector?
A) The incentive system for individuals to perform efficiently are vastly different. B) The workers themselves are really quite different types of people. C) In both sectors individuals will try to maximize their own individual gains over the gains of others. D) Costs and resources are vastly different in each sector.
In theory, price discrimination
a. Reduces the number of consumers who purchase the firm's product b. Decreases producer surplus c. Decreases consumer surplus d. Has no effect on deadweight loss
Recall the Application about price discrimination using refillable soda bottles to answer the following question(s).According to the Application, who are the customers who have a more elastic demand?
A. The consumers who bring refillable bottles to get a discount. B. The consumers who buy the disposable bottles. C. All consumers. D. The consumers who do not buy soda through refillable or disposable bottles.
The following appeared in a newspaper article: "Inflation in the Lehigh Valley during the first quarter of [the year] was less than half the national rate... So, unlike much of the nation, the fear here is deflation-when prices sink so low that the CPI drops below zero Do you agree with the reporter's definition of deflation?
A. Yes. When prices fall too low, the CPI is negative B. Yes. Deflation is caused by a negative CPI C. No. Deflation is defined as a negative inflation rate D. No. Deflation occurs when the nominal interest rate is greater than the real interest rate