The most important way in which inefficiency occurs is
a. producing more military goods instead of civilian goods.
b. limiting economic growth by limiting capital spending.
c. unemployment of labor and other resources.
d. producing outside the production possibilities frontier.
e. All of the above are correct.
c
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If there was a positive technological shock which increased the demand for labor, then
A) imports would increase. B) GDP would decrease. C) GDP would increase. D) imports would decrease.
Full employment occurs when the
A) cyclical unemployment rate equals the natural unemployment rate. B) structural unemployment rate equals zero. C) unemployment rate equals the natural unemployment rate. D) natural unemployment rate equals the frictional unemployment rate. E) structural unemployment rate equals the frictional unemployment rate.