Refer to Exhibit 16-5. If the economy is at point 6, and the natural unemployment rate exists at points 1, 4, and 5, it follows that Group of answer choices
A) Real GDP is greater than Natural Real GDP.
B) Real GDP is less than Natural Real GDP.
C) Real GDP is the same as Natural Real GDP.
D) the economy is in a recessionary gap.
E) b and d
Answer: B) Real GDP is less than Natural Real GDP.
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In a report made to the U.S. Congress in 2001, the National Academy of Sciences cautioned that if fuel economy encourages the production of smaller and lighter cars, "Some additional traffic fatalities would be expected"
This statement suggests that A) U.S. auto manufacturers are more concerned about producing fuel efficient cars to compete with their Japanese and South Korean rivals than about consumer safety. B) there is a tradeoff between safety and fuel economy. C) society should value fuel economy more highly than consumer safety because of the long-term environmental benefits generated by less gasoline use. D) society should value safety more highly than fuel economy.
Which of the following affect the growth in real GDP per capita? a. the total production of final goods in the economy. b. the population
c. the production of final services in the economy. d. all of the above