If Real GDP is less than potential Real GDP, then the (actual) unemployment rate is
A. less than the natural unemployment rate.
B. equal to the natural unemployment rate.
C. greater than the natural unemployment rate.
D. less than or greater than the natural unemployment rate, but we cannot determine which one.
Answer: C. greater than the natural unemployment rate.
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If a line passes through the points (20,5) and (10,10), then the slope of the line is 1/2
a. True b. False Indicate whether the statement is true or false
Answer the following questions true (T) or false (F)
1. Consumers in monopolistically competitive markets face a trade-off between paying prices greater than marginal costs and purchasing products that are more closely suited to their tastes. 2. One way by which firms differentiate their products is to try to anticipate changes in consumer tastes and adapt their products to fit those changed tastes. 3. In the long-run equilibrium, a monopolistically competitive firm earning normal profit produces the allocatively efficient output level.
Refer to the graph which shows the supply and demand for money where Dm1, Dm2, and Dm3 represent different demands for money and Sm1, Sm2, and Sm3 represent different levels of the money supply. The initial equilibrium point is A. What will be the new equilibrium point following a decrease in the transactions demand for money?
A. B
B. E
C. F
D. I
Germany has a comparative advantage in the production of which product?
