Unemployment will decrease over time if:
a. actual GDP increases faster than potential GDP.
b. actual GDP increases at the same rate as potential GDP.
c. acutal GDP remains the same but potential GDP increases.
d. actual GDP increases at a less than proportionate rate than potential GDP.
e. actual GDP decreases but potential GDP increases.
a
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Which of the following is NOT true of institutions?
A) Institutions affect incentives. B) Institutions are determined by individuals as members of society. C) Institutions are permanent and cannot be changed over time. D) Institutions act as constraints on the behavior of economic agents.
The M2 measure of the money supply equals
A) M1 plus savings account balances plus small-denomination time deposits. B) savings account balances plus small-denomination time deposits plus traveler's checks. C) M1 plus savings account balances plus small-denomination time deposits plus noninstitutional money market fund shares. D) savings account balances plus small-denomination time deposits plus noninstitutional money market fund shares.