Suppose an open economy is in equilibrium. Given this information, we know with certainty that

When the unemployment rate is greater than the natural unemployment rate, real GDP is

A) greater than full employment GDP. B) less than potential GDP. C) equal to potential GDP. D) greater than potential GDP. E) unrelated to potential GDP.

Some individuals seek to use government action to make themselves better off at the expense of others. The actions of these individuals

A) are evidence of the voting paradox. B) are examples of fraud; but these individuals usually avoid prosecution because of logrolling and rational ignorance. C) offer proof that Adam Smith's "invisible hand" is not valid. D) are examples of rent seeking.