In the short run, if the economy is at full employment, then the quantity of real GDP
A) is equal to potential GDP, and the unemployment rate is equal to the natural unemployment rate.
B) does not necessarily equal potential GDP, but the unemployment rate is equal to the natural unemployment rate.
C) is equal to potential GDP, but the unemployment rate does not necessarily equal the natural unemployment rate.
D) is equal to potential GDP, but the unemployment rate is less than the natural unemployment rate.
E) exceeds potential GDP, and the unemployment rate is less than the natural unemployment rate.
A
You might also like to view...
The monopolistically competitive seller's demand curve will tend to become more elastic the:
A) smaller the number of sellers. B) greater the degree of product differentiation. C) larger the number of close competitors. D) more significant the barriers to entering an industry.
Which of the following would NOT allow society to move to point "h" in the above figure?
A) an improvement in technology B) more efficient use of current resources C) an increase in quantity of labor D) an increase in quantity of capital