If the economy is at full employment
A) the entire population is employed.
B) the entire labor force is employed.
C) the only unemployment is frictional unemployment plus discouraged workers.
D) real GDP equals potential GDP.
D
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A multi-plant firm has three plants and, at its current production levels, the marginal cost of production at each of the three plants is $2.00. If the firm is perfectly competitive and the market price of its product is $5, which of the following is true?
A) The firm should exactly triple output in each of the plants to maximize profit. B) The firm is not producing the profit-maximizing total output. C) The firm is producing the profit-maximizing total output. D) The firm should increase output at each of the plants to maximize profit.
According to the partisan party model,
a. the primary emphasis of the liberal party is on full employment and income distribution. b. the liberal party stresses price stability as their most important goal. c. employment stability is most important to the conservative party. d. only two parties exist. e. Both a and d.
Consider the market for nonalcoholic beers from the previous question. Cudweisers' price in a Nash equilibrium (assuming Bertrand competition in these differentiated beers) is about
a. 0.99 b. 1.09 c. 1.71 d. 2.55
One signal that the U.S. dollar was overvalued in the early 1970s was the
a. stable price of gold. b. volume of international trade. c. recurring balance-of-trade deficits in the U.S. d. recurring balance-of-trade deficits in European countries.