The amount by which potential GDP exceeds actual GDP is one measure of the:
A. opportunity cost of cyclical unemployment.
B. difference between real and nominal income.
C. natural rate of unemployment.
D. difference between real and nominal GDP.
Answer: A
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Calculate the income elasticity if an 8 percent increase in income leads to a 4 percent increase in quantity demanded for organic produce
A) -0.66 B) 0.5 C) 1.5 D) 2
One reason why many low-income countries experience low rates of growth is because of poor public education and health
Indicate whether the statement is true or false
A small decrease in a production quota will have a large impact on the support price if:
A) demand is completely elastic. B) demand is highly (but not completely) elastic. C) demand is inelastic. D) The demand elasticity does not affect the price outcomes of a quota program.
The end of the Cold War is generally marked by the fall of the Berlin Wall in
A) 1961. B) 1969. C) 1979. D) 1989. E) 1994.