The level of real GDP the economy produces at full employment is called
A) sustainable GDP.
B) nominal GDP.
C) potential GDP.
D) maximum GDP.
E) Lucas GDP.
C
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A rightward shift in the supply curve of reserves held at the Fed ________
A) reduces the federal funds interest rate B) increases unemployment C) reduces the price level D) increases the tax rates
One of the shortcomings of the Solow growth model is that in it the rate of technological change is
A) assumed to be zero. B) assumed to be equal to the population growth rate. C) left unexplained. D) zero unless the saving rate exceeds the depreciation rate.
What is characteristic of a traditional economy?
What will be an ideal response?
Why is a period of stagflation part of the normal aftermath of a period of excessive aggregate demand?
What will be an ideal response?