Potential GDP refers to the quantity of output that an economy can produce with full employment of its labor and physical capital
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
The transaction demand for money comes mostly from the fact that
A) money is a medium of exchange. B) money has low opportunity cost. C) money is a store of value. D) money is a unit of account.
The above figure shows the payoff matrix for two firms, A and B, choosing to produce a basic computer or an advanced computer. The joint profits
A) will be maximized at a Nash equilibrium. B) will be maximized when both firms take different actions. C) will be maximized when both firms take the same actions. D) Both A and B.
Suppose total deposits in the First Bank of Commerce are $200,000 and required reserves are $10,000. Based on this information, the required reserve ratio is:
A. 20.0. B. 0.05. C. 0.10. D. 0.20.
Recall the Application about low-price guarantees and the prices of tires to answer the following question(s).Recall the Application. A study of the retail tire market suggests that prices are ________ in markets where firms offer low-price guarantees.
A. generally higher B. generally lower C. always lower D. generally unchanged