Refer to Exhibit 16-5. If the economy is at point 6, and the natural unemployment rate exists at points 1, 4, and 5, it follows that Group of answer choices
A) Real GDP is greater than Natural Real GDP.
B) Real GDP is less than Natural Real GDP.
C) Real GDP is the same as Natural Real GDP.
D) the economy is in a recessionary gap.
E) b and d
Answer: B) Real GDP is less than Natural Real GDP.
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A key aspect of East Asian development policies was
a. lack of government intervention in company affairs b. government ownership of most companies c. government planning d. government incentives for particular companies e. none of the above
Suppose Iceland goes from being an isolated country to being an exporter of coats. As a result,
a. consumer surplus increases for consumers of coats in Iceland. b. producer surplus increases for producers of coats in Iceland. c. total surplus remains unchanged in the coat market in Iceland. d. it is reasonable to infer that other countries have a comparative advantage over Iceland in coat production.
Knowing how to translate between present and future value can be useful when:
A. the benefits and opportunity cost occur at different times. B. there are no benefits and costs. C. there are benefits and costs occurring at the same time. D. the current costs are higher than the present benefits.
The investment in human capital through education and training can result in
A. Reduced output per labor hour. B. Greater productivity. C. Less capital-intensive production. D. Low factor mobility.