In the vertical segment of the aggregate supply curve,
a. real GDP increases with increasing unemployment
b. competition among producers for already-employed resources forces the price level downward
c. the economy is at full employment
d. producers are able to hire more workers at lower wages
e. increases in real GDP come only at the expense of higher price levels
C
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Which of the following statements is true?
A) GDP growth distributes income equally to people in the economy. B) GDP accounting rules do not adjust for production that pollutes the economy. C) A decrease in the crime rate increases GDP as people will spend more on security. D) Household production is counted in GDP as it amounts to real production.
Unions can increase their wage rates by
a. all of the following b. decreasing the supply of labor c. using the threat of a strike d. increasing the proportion of union workers in the industry e. increasing the demand for the product they produce and, therefore, the demand for their labor services