Which of the following occurs when all the resources of an economy are fully employed?
a. efficiency wage model
b. frictional unemployment
c. natural rate of unemployment
d. potential output
d. potential output
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Refer to Figure 4-13 which shows the market for watermelons. Suppose the government imposes a price floor of Pw. How will the price floor affect the quantity supplied, quantity demanded, and quantity exchanged?
What will be an ideal response?
The Federal Reserve is
A) a Kentucky bourbon. B) a wild game preserve. C) an express mail service. D) the central bank of the United States.
When the official price for goods and services is below the equilibrium price in a market, prices no longer perform their rationing function efficiently
a. True b. False Indicate whether the statement is true or false
According to monetarists
A. changes in the money supply are the primary cause of changes in real output and the price level. B. an expansionary fiscal policy will lower interest rates and thereby tend to over-stimulate the economy. C. changes in the velocity of money are more important than changes in the money supply in causing the level of economic activity to change. D. the supply of money changes in response to changes in the levels of real output and prices.