The tables above show a nation's labor demand and labor supply schedules and its production function. Given the equilibrium in the labor market, potential GDP is
A) $3.0 trillion.
B) $3.7 trillion.
C) $4.2 trillion.
D) $4.5 trillion.
E) $2.0 trillion.
C
You might also like to view...
The Malthusian model performs poorly in explaining economic growth after the
A) French Revolution. B) American Revolution. C) Industrial Revolution. D) Bio-technology Revolution.
A requirement that the budget be balanced in each calendar year is a misguided overreaction to the fear that in some cases
a. budget surpluses can become too large. b. budget deficits can become too large. c. interest rates would rise. d. interest rates would fall.
The unemployment rate:
a. Always rises when the employment rate rises. b. Has more reliable components (in terms of measurability) than the employment rate. c. Is considered to be a poorer measure of business cycle activity than the employment rate. d. Tends to be more stable than the employment rate. e. None of the above.
Recessions
A. almost never occur in the American economy. B. follow a regular and predictable cycle. C. are common features of the American economy. D. have been abolished by wise macroeconomic policy.