The natural rate of output is ________
A) independent of the inflation rate
B) always lower than potential output
C) unrelated to the natural rate of unemployment
D) all of the above
E) none of the above
A
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Which of the following would be most likely to cause an increase in current aggregate demand in the United States?
a. increased fear that the U.S. economy was going into a recession b. an increase in the real interest rate c. a reduction in the expected rate of inflation d. rapid growth of real income in Canada and Western Europe
While the debate between output and the environment is subjective, all countries should aim to be where on the production possibility frontier?
a. Inside the PPF with allocative efficiency b. Outside the PPF with allocative efficiency c. Inside the PPF with productive efficiency d. On the PPF with productive efficiency