What determines potential GDP?
What will be an ideal response?
Potential GDP is determined from the labor market equilibrium. When the labor market is in equilibrium, there is full employment. The quantity of real GDP produced by the full employment quantity of labor is potential GDP.
Economics
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An engineer has informed the city manager that the marginal cost of an additional car crossing the city bridge is zero? If you were required to draw this cost function on a graph what would it look like? What is the slope of this graph?
What will be an ideal response?
Economics
On-the-job experience causes labor productivity to increase through an improvement in human capital
a. True b. False Indicate whether the statement is true or false
Economics