Suppose that Australia has fully employed all of its resources. This situation means that Australia ?
A) is experiencing zero unemployment.
B) has a positive Lucas Wedge.
C) has a negative Okun Ga
D) is operating at its potential GDP
Answer: D) is operating at its potential GDP
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A demand curve is upward sloping because as the price decreases the quantity demanded decreases
Indicate whether the statement is true or false
The law of demand (downward-sloping demand curve)is based on the idea of
a. maximum total utility b. minimum marginal utility c. total utility divided by quantity of the good consumed d. law of diminishing marginal utility e. consumers minimize total utility
Poor countries often have difficulty investing in capital because
a. development assistance is designed in increase consumer goods. b. multinational corporations do not bring technological advances into poor countries. c. the population is living at subsistence level and cannot afford to save. d. they suffer from the cost disease of personal services.
The maximum price that consumers are willing to pay for the hundredth unit of a good can be found as
a. the height of the supply curve at a quantity of 100. b. the height of the demand curve at a quantity of 100. c. the difference between the height of the supply and demand curves at a quantity of 100. d. none of the above.