When the output of an economy exceeds the economy's full-employment capacity,
a. aggregate supply will increase until the economy can produce the output at the existing price level.
b. the actual rate of unemployment will be less than the natural rate.
c. wage rates and resource prices will tend to fall.
d. interest rates will decline and help direct the economy back to full employment.
B
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A technological advance may come in either the form of a product or a process innovation
a. True b. False Indicate whether the statement is true or false
If discrimination based on gender and race was eliminated, we would expect the:
A. personal distribution of income to become less equal. B. personal distribution of income to become more equal. C. personal distribution of income to be unaffected. D. functional distribution of income to change in favor of profits and interest.