A country reports a potential GDP of $6 trillion, a natural unemployment rate of 4 percent and an expected inflation rate of 2 percent. Using Okun's Law, if the unemployment rate is 5 percent, what is real GDP?
What will be an ideal response?
Real GDP = $5.88 trillion (= $6 trillion × 0.98).
Economics
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Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for almonds. Which panel best describes what happens in this market when there is an increase in the productivity of almond harvesters?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
Economics
Typically, the major cost of a college education is
A) tuition. B) books. C) foregone income. D) housing.
Economics