The idea that potential GDP is the sustainable upper limit of production means that
A) real GDP may be temporarily larger than potential GDP, but not permanently.
B) the economy is operating environmentally efficiently.
C) real GDP may be temporarily less than potential GDP.
D) inflation must always occur in a growing economy.
E) unemployment can only temporarily be zero in a healthy economy.
A
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Discuss the problems associated with the Bretton Woods system
People's incomes are relatively low when they are young, reach a peak in middle age, and then decline. This fact helps explain:
A. the wide variations of Gini ratios among nations. B. the equality-efficiency trade-off. C. why the lifetime distribution of income is more equal than the distribution in any given year. D. why the lifetime distribution of income is less equal than the distribution in any given year.