Exhibit 10-6 Aggregate supply curve
In Exhibit 10-6, the economy's employment potential is fully exhausted at:
A. GDP = $1,000 billion.
B. GDP = $1,100 billion.
C. GDP = $1,200 billion.
D. the employment potential is never fully exhausted.
Answer: C
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A. Point B B. Point C C. Point D D. Point A
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When economists make
a. positive statements, they are speaking not as scientists but as policy advisers. b. positive statements, they are speaking not as scientists but as forecasters. c. normative statements, they are speaking not as scientists but as policy advisers. d. normative statements, they are speaking not as policy advisers but as model-builders.
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Answer the following statement true (T) or false (F)