Industry A has four firms, each with a 25% market share while industry B has four firms, one firm with a 70% market share and the other three firms with 10% each. According to the Herfindahl-Hirschman Index, industry A is more highly concentrated

Which of the following is false about potential output?

A. It is the level of output an economy can achieve when labor is employed at its natural level. B. It is the long run output level that guarantees price stability. C. If a country is producing its potential output, then it is producing at a point on its production possibilities frontier. D. It is also called the natural level of real GDP.

Table 6.3: Population and Labor Force?Year 1Year 5Working Age Population200 million250 millionLabor Force110 million145 millionEmployed106 million135 millionWhat is the unemployment rate in Year 5 in Table 6.3?

A. 7.4 percent. B. 6.9 percent. C. 54.0 percent. D. 4.0 percent.