Full employment corresponds to
A) equilibrium in the labor market, with actual GDP being equal to potential GDP.
B) labor demand being greater than labor supply and actual GDP being equal to potential GDP.
C) being at the point where the marginal product of labor equals zero.
D) equilibrium in the labor market, and actual GDP exceeding potential GDP.
A
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What will be an ideal response?
In an open economy with few capital restrictions and substantial import-export trade, a rise in interest rates and a decline in the producer price index of inflation will
a. raise the value of the currency b. lower the nominal interest rate c. increase the volume of trading in the foreign exchange market d. lower the trade-weighted exchange rate e. increase consumer inflation.