Using the information in the above table, the unemployment rate is
A) 4.5 percent.
B) 4.3 percent.
C) 2.8 percent.
D) 6.0 percent.
B
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The Lucas Wedge shows
A) the negative impact inflation has on consumer spending. B) whether a country needs to slow its real GDP growth rate. C) the positive impact lower taxes have on real GDP. D) the negative impact a slowdown in real GDP growth has on potential GDP. E) the increased impact of government spending on real GDP.
If the price level in the United States increases relative to prices in foreign countries, then
A. imports and exports of the United States will increase. B. imports and exports of the United States will decrease. C. imports of the United States will decrease and exports of the United States will increase. D. imports of the United States will increase and exports of the United States will decrease.