Suppose that the economy has a structural deficit of $200 billion and is operating above potential output. From this we can infer that the budget as a whole:
A. is balanced.
B. is in surplus.
C. is in deficit.
D. could be in deficit, in surplus, or balanced.
Answer: D
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Human capital refers to the percentage of the working-age population in the labor force
Indicate whether the statement is true or false
If the demand for a monopoly's output shifts rightward, the change in quantity produced is
A) positive. B) negative. C) zero. D) not predictable.
Which of the following contributes to structural unemployment?
A. People over 65 who don't really want to work. B. A general short-run downturn in the economy. C. People quitting a job just long enough to look for and find another one. D. People losing a job when their skills become obsolete due to technological innovations.
If real per capita Gross Domestic Product (GDP) grows at a constant annual rate of 4 percent and the annual population growth rate increases from 1 percent to 2 percent, the annual rate of growth of per capita real GDP will
A) increase. B) decrease. C) remain unchanged. D) increase or decrease depending.