Potential GDP is estimated to grow at a rate of 3.2% in the United States. Actual GDP in the U.S
A) always grows at a slower rate than potential GDP.
B) is the same as potential GDP if all firms in the economy were working at capacity.
C) always grows at the same rate as potential GDP.
D) always grows at a faster rate than potential GDP.
B
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A pooling equilibrium occurs when
A) dissimilar workers are paid alike. B) firms can distinguish between workers of different qualities. C) workers of the same quality are paid different wages. D) all workers are overpaid equally.
An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply. B. increase in aggregate demand. C. increase in short-run aggregate supply. D. decrease in aggregate demand.
The vertical distance between the total cost and the total variable cost curves differs by an amount that:
A. initially increases, but then decreases, as output increases. B. is constant as output changes. C. decreases as output increases. D. increases as output increases.
The monopsonist will employ labor to the point at which the
A) marginal factor cost equals the marginal revenue product of labor. B) marginal revenue product equals the wage rate. C) marginal cost of output equals the marginal revenue. D) demand equals the supply of labor.