Suppose Germany's economy is experiencing full employment. This means that, in Germany,
A) the unemployment rate is equal to zero.
B) real GDP is equal to potential GDP.
C) real GDP is greater than potential GDP.
D) potential GDP is greater than real GDP.
E) real GDP equals nominal GDP.
B
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Consumers are willing to purchase a product up to the point where
A) the marginal benefit of consuming the product equals the area below the supply curve and above the market price. B) the marginal benefit of consuming a product is equal to its price. C) the marginal benefit of consuming the product is equal to the marginal cost of consuming it. D) the consumer surplus is equal to the producer surplus.
In response to an increase in total factor productivity
A) both the substitution effect and the income effect suggest that hours worked should increase. B) the substitution effect suggests that hours worked should increase, while the income effect suggests that hours worked should decrease. C) the substitution effect suggests that hours worked should decrease, while the income effect suggests that hours worked should increase. D) both the substitution effect and the income effect suggest that hours worked should decrease.
If the reserve ratio increased from 5 percent to 10 percent, then the money multiplier would a. rise from 5 to 10
b. rise from 10 to 20. c. fall from 20 to 10. d. fall from 10 to 5.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point B to Point C so that an additional 20 OLED televisions could be produced, production of LCD televisions would have to be reduced by
A. more than 30. B. exactly 60. C. fewer than 30. D. exactly 30.