During a recession,
A) real GDP is less than potential GDP.
B) real GDP is equal to potential GDP.
C) the actual unemployment rate is less than the natural unemployment rate.
D) real GDP is greater than potential GDP.
E) the relationship between real GDP and potential GDP no longer exists.
A
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If the marginal product of labor falls, the marginal cost of output
a. declines, then increases b. becomes negative c. rises d. remains constant e. falls
Everything else equal, the more rivals a firm has, the
a. less kinked is its demand curve. b. closer is its equilibrium price to its average variable costs. c. more differentiated is its product from rivals' products. d. more elastic is its demand curve.
Gwen is an unpaid worker in her family's restaurant. The Bureau of Labor Statistics counts Gwen as
a. unemployed and in the labor force. b. unemployed and not in the labor force. c. employed and in the labor force. d. employed and not in the labor force.
The federal budget went $161 billion in fiscal year 2007 to $1 trillion in the next two to three years. What are the main factors that contributed to this increase?
What will be an ideal response?