Refer to Figure 4.5. If all 10 students choose Solid, each student will earn ________ extra points

Which of the following statements about potential GDP is false?

A) The Fed's goal is to have equilibrium GDP close to potential GDP. B) When GDP is at potential, cyclical unemployment is zero. C) It occurs when firms are producing at their maximum level of output. D) It occurs when firms are producing with a workforce of normal size working normal hours.

One of the principles behind the concept of the circular flow is that

A. the seller of goods receives exactly the same amount that the buyer spends, but the seller of resources receives less than the buyer spends. B. in every economic exchange, the seller receives less than the amount that the buyer spends. C. in every economic exchange, the seller receives exactly the same amount that the buyer spends. D. in exchange involving products, the seller receives less than the amount the buyer spends, but in resource markets the seller receives more than the buyer spends.