Potential GDP is
A) another name for real GDP.
B) the amount of real GDP that the economy would produce if it were at full employment of all resources.
C) the value of the maximum amount of output that can be produced at any given time.
D) the amount of real GDP that the economy would produce if the unemployment rate was zero.
E) the amount of real GDP that the economy would produce if all unemployment was cyclical unemployment.
B
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Which of the following characteristics is a precondition for economic growth? i. economic freedom ii. free markets iii. active government policy to discourage saving
A) i only B) ii only C) iii only D) Both i and ii E) Both ii and iii
Which country has the highest level of income inequality?
a. Brazil b. Russia c. China d. India
Use the following graph to answer the next question.
Which of the following changes will shift AD1 to AD2?
A. A shrinkage in the value of stocks and other financial assets B. An increase in the value of the dollar relative to other currencies C. An increase in real interest rates D. A decrease in personal and business taxes
What type of relationship does the law of demand demonstrate?
A) direct B) equilibrium C) inverse D) dynamic