Full-employment income is the same as the potential GDP of the economy.
Answer the following statement true (T) or false (F)
True
At full employment, the economy will be operating at a point along its production possibilities curve.
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If the net public debt remains unchanged during a given period, but the gross public debt increases, then which of the following statements must be correct?
A) Government interagency borrowing must have decreased during the period. B) Foreign ownership of U.S. Treasury securities must have fallen during the period. C) Government interagency borrowing must have increased during the period. D) Foreign ownership of U.S. Treasury securities must have risen during the period.
A simple linear demand function may be stated as Q = a - bP + cI where Q is quantity demanded, P is the product price, and I is consumer income. To compute an appropriate value for c, we can use observed values for Q and I and then set the estimated income elasticity of demand equal to:
A. c(Q/I). B. -b(I/Q). C. Q/(cI). D. c(I/Q).
If at a given exchange rate U.S. citizens wanted to buy more foreign bonds
a. the demand for dollars in the market for foreign-currency exchange would shift right. b. the demand for dollars in the market for foreign-currency exchange would shift left. c. the supply of dollars in the market for foreign-currency exchange shifts right. d. the supply of dollars in the market for foreign-currency exchange shifts left.
Private schools are able to exclude students from attending classes they offer unless students have been accepted and paid tuition and fees. This suggests that education is
A. subject to the principle of rival consumption. B. not subject to the exclusion principle. C. subject to the free-rider problem. D. a public good.