If New Zealand is operating at potential GDP, which of the following is true?
i. New Zealand only has frictional and structural unemployment.
ii. There is no inflation in New Zealand.
iii. New Zealand has positive net exports.
A) i, ii and iii
B) i only
C) i and ii
D) i and iii
E) ii only
B
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Maurice Richard loves to play hockey. He would play the minor leagues and the major leagues with equal gusto. Suppose he earned $35,000 playing for the minor league Urbana Tigers and "gets the call" from the Dallas Stars, a major league team. He excitedly tells his wife, an economist, that his wage is now $379,000 (that's the contract he signed) and she informs him that his wage-related rent is
a. $344,000 b. $379,000 c. $35,000 d. $414,000 e. $0 because he signed the "wage" contract
One of the main reasons that people want to limit imports is the
a. fear that imports will decrease the income of Americans. b. idea that cheap foreign labor destroys American jobs. c. concept that if trade benefits another country, it must harm the United States. d. All of the above are correct.
Productivity is defined as the quantity of goods and services produced from each unit of labor input
a. True b. False Indicate whether the statement is true or false
According to the Phillips curve, which fiscal policies can be used to reduce unemployment in the short run?