The potential output of an economy is the level of output produced when the:
a. real wage equals the nominal wage
b. price level is constant.
c. expected real wage equals the nominal wage.
d. seasonal unemployment rate is zero.
e. expected price level equals the actual price level.
e
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Most of the world's population lives in
A) advanced economies. B) developing economies. C) transition economies. D) emerging market economies. E) island nations.
Which of the following is not a reason why firms experience economies of scale?
A) Workers and managers can become more specialized, enabling them to be more productive. B) As output increases, the managers can begin to have difficulty coordinating the operations of their firms. C) Technology can make it possible to increase production with a smaller increase in at least one input. D) Larger firms may be able to purchase inputs at lower costs than smaller competitors.
The concept of ________ is based on the common-sense notion that a dollar paid to you in the future is less valuable to you than a dollar today
A) present value B) future value C) interest D) deflation
When a country allows trade and becomes an exporter of a good, which of the following is not a consequence?
a. The price paid by domestic consumers of the good increases. b. The price received by domestic producers of the good increases. c. The losses of domestic consumers of the good exceed the gains of domestic producers of the good. d. The gains of domestic producers of the good exceed the losses of domestic consumers of the good.