If real GDP is less than potential GDP, the economy is
A) not in macroeconomic equilibrium.
B) at full employment.
C) in an above-full-employment equilibrium.
D) in a below-full-employment equilibrium.
D
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Why is the monopoly total welfare lower than the competitive total welfare?
What will be an ideal response?
Bonds differ from stocks in all of these ways except:
a. a purchase of corporate stock becomes a part owner of the corporation, while a bondholder does not b. a bondholder loans money to the corporation, which has priority for repayment, while a stockholder may lose her investment c. stockholders know with a high degree of certainty how much money they will get, while bondholders do not d. all of these are correct
Ceteris Paribus
What will be an ideal response?
If the opportunity cost is 2X = 1Y for country A and 1/3X = 1Y for country B, then a possible terms of trade is:
A) 1X=1Y. B) 1X=4Y. C) 1X=5Y. D) 3X=1Y.