Which of the following is the formula for the potential growth rate?
A. The short-term growth rate plus the long-term aggregate productivity growth rate
B. The short-term growth rate plus the long-term productivity growth rate
C. The short-term aggregate growth rate minus the long-term productivity growth rate
D. The long-term labor force growth rate plus the long-term productivity growth rate
Answer: D
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Which of the following explain the natural rate of unemployment?
i. job search ii. the Okun Gap iii. the production function A) iii only B) ii and iii C) i and ii D) i and iii E) i only
An increase in the price of an input will cause supply to increase
Indicate whether the statement is true or false
The business cycle is the periodic but recurrent fluctuations in real GDP
a. True b. False Indicate whether the statement is true or false
If Shawn can produce donuts at a lower opportunity cost than Sue, then
a. Shawn has a comparative advantage in the production of donuts. b. Sue has a comparative advantage in the production of donuts. c. Shawn should not produce donuts. d. Shawn is capable of producing more donuts than Sue in a given amount of time.