Which of the following is most important if a country is going to achieve and sustain rapid economic growth?
a. large government expenditures as a share of GDP
b. institutions and policies that are supportive of competition (open markets) and freedom of exchange.
c. free elections and political democracy
d. monetary policy makers who are willing to expand the supply of money rapidly
B
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Fred Jaher reported to the government interviewer that he worked 40 hours last week as a stocker at a Target department store. He also said that he has a Ph.D. in history and had hoped to be a history professor. With all this information, we know that Fred is
a. a member of the labor force who is underemployed b. a member of the labor force who is structurally unemployed c. a member of the labor force who is frictionally unemployed d. a discouraged worker who is not a member of the labor force e. not a member of the labor force because he is not working at his capacity
A recessionary output gap is defined to be when:
A. equilibrium aggregate expenditure is below full employment GDP. B. equilibrium aggregate expenditure is equal to full employment GDP. C. equilibrium aggregate expenditure is above full employment GDP. D. government spending is insufficient causing a gap in GDP.