Potential GDP is the value of real GDP when ______
A. the unemployment rate equals the natural unemployment rate
B. there is no frictional unemployment
C. there is no structural unemployment
D. the unemployment rate is zero
A When real GDP equals potential GDP, the unemployment rate equals the natural unemployment rate.
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In the figure above, the lowest 20 percent of all households own ________ percent of all wealth, the next lowest 20 percent own ________ percent of all wealth and the richest 20 percent own ________ percent of all wealth
A) 20; 20; 20 B) 20; 40; 100 C) 5; 15; 40 D) 5; 20; 60
Marginal utility theory predicts that
A) when the price of a good rises, the quantity demanded of that good decreases. B) if the price of one good rises, the demand for a substitute good increases. C) if income increases, the demand for a normal good increases. D) All of the above answers are correct because all are predictions of marginal utility theory.
Richard Baldwin's estimate was that the euro increased the trade level of its users by
A) only 5 percent. B) only 9 percent. C) over 30 percent. D) over 50 percent. E) only 12 percent.
Unbalanced investment projects are largely responsible for the high concentration of wealth in poor countries
Indicate whether the statement is true or false