In the figure above, the natural unemployment rate is

The substitution effect suggests that, when consumers judge product quality by price, they will substitute high-priced products for low-priced products.

a. true b. false

If we use GDP to measure our standard of living, then our procedure is

A) accurate because our standard of living depends solely on goods and services. B) inaccurate because our standard of living only depends on used goods and services. C) inaccurate because our standard of living does not depend only on goods and services. D) inaccurate because our standard of living has nothing to do with goods and services. E) accurate only if we use nominal GDP rather than real GDP.