An economy’s natural rate of output is ______.
a. equal to its real GDP per capita
b. how much it will produce at its potential output
c. independent of its resources
d. unchanging year to year
b. how much it will produce at its potential output
You might also like to view...
The average hourly wage (excluding benefits) in the United States is currently around
A. $7.25 B. $15.50 C. $20.00 D. $26.00
Which of the following is classified as an intermediate good?
i. the purchase of a Big Mac by a college student ii. McDonald's purchase of pickles iii. a McDonald's restaurant owner's interest payment for the loan on her building A) ii only B) ii and iii C) i only D) i and iii E) i, ii and iii
The theory of rational expectations suggests that
A. people make systematic forecast errors. B. people never make forecast errors. C. people are slow to incorporate new information into their forecasts. D. people make intelligent use of available information.
The percentage change in quantity demanded that results from a 1 percent change in price is known as the:
A. price elasticity of supply. B. cross-price elasticity of demand. C. price elasticity of demand. D. income elasticity of demand.