On the long-run aggregate supply curve,
A) an increase in the price level increases the level of potential GDP.
B) an increase in the price level has no effect on the aggregate quantity of GDP supplied.
C) an increase in the price level reduces the aggregate quantity of GDP supplied.
D) an increase in the price level increases the aggregate quantity of GDP supplied.
B
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The result that the growth rate of output per worker is equal to 1.43 × is ________
A) true of the Solow model only B) true of both the Solow model and the Romer model C) true of the Romer model only D) true under the common-law legal system only
Which of the following types of unemployment can exist in an economy that is at its potential output level?
a. cyclical unemployment only b. structural unemployment only c. frictional, cyclical, and seasonal unemployment only d. frictional, seasonal, and structural unemployment only e. there will be no unemployment in an economy that is at the potential output level