A market economy benefits from market power

A) if firms with market power do research and development with the profits earned.
B) if market power gets so bad the government creates public enterprises.
C) if the majority of the population are entrepreneurs.
D) under no circumstances.

A

Economics

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According to Okun's law, if the cyclical unemployment rate increases by 3 percentage points, real GDP growth will decrease by about 3 percentage points

Indicate whether the statement is true or false

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When the unemployment rate _________ the natural unemployment rate, real GDP is _________ potential GDP and the output gap is _________

A. exceeds; below; negative B. is below; below; negative C. exceeds; above; positive D. is below; above; negative

Economics