If the natural unemployment rate is 7 percent and the current unemployment rate is 5 percent, then the economy is
A) producing a level of Real GDP that is greater than the level of natural Real GDP.
B) in a recessionary gap.
C) producing a level of Real GDP that is less than the level of natural Real GDP.
D) a and b
E) b and c
A
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Bananas, chocolate bars, chewing gum, orange juice and yogurt are considered to be ________ goods
A) service B) durable C) nondurable D) essential
If the CPI basket costs $35 in the base period but costs $42, what is the CPI in the next period?
A) 83.3 B) $42 C) 20 percent D) 120
In a monopolistically competitive industry
A) firms can make an economic profit in the long run because of barriers to entry. B) the firms can never make an economic profit. C) if firms are making an economic profit, new firms enter the industry. D) firms can make an economic profit in the long run because of product differentiation.
Seth is a competitive body builder. He says he has to have his 12-oz package of protein powder to "feed his muscles" every day. On the basis of this information, what can you conclude about his price elasticity of demand for protein powder?
A) It is perfectly inelastic. B) The price elasticity coefficient is 1. C) It is elastic. D) It is perfectly elastic.