When an economy is operating at its full employment rate of output:
A. the rate of unemployment will be zero.
B. output will exceed the economy's maximum sustainable rate.
C. the actual rate of unemployment will equal the natural rate.
D. the economy's potential rate of output will exceed actual GDP.
Answer: C
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Refer to Table 2-4. Assume Dina's Diner only produces sliders and hot wings. A combination of 50 sliders and 50 hot wings would appear
A) along Dina's production possibilities frontier. B) inside Dina's production possibilities frontier. C) outside Dina's production possibilities frontier. D) at the vertical intercept of Dina's production possibilities frontier.
As the price level falls
a. people will want to buy more bonds, so the interest rate rises. b. people will want to buy fewer bonds, so the interest rate falls. c. people will want to buy more bonds, so the interest rate falls. d. people will want to buy fewer bonds, so the interest rate rises.
In the United States, which workers displaced by trade are able to adjust the easiest?
a. those in the service industries b. those in the manufacturing industries c. Evidence indicates that there is no difference across industries. d. There is no available evidence on this topic.
The principal-agent problem happens because the owner cannot:
A. control the production process. B. monitor the efforts of the manager. C. spend time at the physical plant site. D. evaluate the efforts of the manager.