If the economy is self-regulating and current Real GDP is greater than Natural Real GDP, the economy is operating __________ the natural unemployment rate and wages will soon __________
A) below; fall.
B) above; fall
C) below; rise
D) above; rise
E) none of the above
C
You might also like to view...
If a group of economists believes the following points are true, which is likely to be their policy making stance?
? Aggregate demand shocks have no long run effect on real Gross Domestic Product (GDP) or unemployment. ? Pure competition is widespread throughout the economy. ? Real wages are flexible. ? The Phillips Curve trade-off does not exist in the long run. A) They will support discretionary policy making. B) They will support passive policy making. C) They will support active policy making. D) They will argue that any attempt at economic policy making is futile.
The reason computers have not yet replaced trading floors can be attributed to
A) lack of sellers. B) lack of buyers. C) lack of liquidity. D) lack of technology.
Under a transferable emissions permit system with n possible polluters, the government enforces the total amount of emissions allowable at X units by
A) setting a different fee for each firm so that each firm chooses to emit X/n units. B) setting the same fee for each firm so that each is forced to emit X/n units. C) setting a different standard for each firm, with X/n being the average. D) setting the same standard for each firm at X/n. E) issuing X permits.
The main problem with using desalination to increase water supplies is that
a. There are few available sources b. It is very expensive c. Supplies are usually contaminated with pesticides d. Water tends to evaporate before it can be used e. Communities tend to be located too far from water supplies