Refer to Figure 23-2. Suppose that the level of GDP associated with point K is potential GDP. If the U.S. economy is currently at point N,
A) firms are operating below capacity.
B) the economy is in an expansion.
C) the level of unemployment is above the natural rate.
D) the economy is at full employment.
B
Economics
You might also like to view...
A perfectly competitive firm breaks even at a price equal to its minimum average total cost
Indicate whether the statement is true or false
Economics
Based on Table 4.1, according to the Stolper-Samuelson Theorem, the income distribution effects of free trade in the United States are likely to favor
A) capital. B) labor. C) either capital or labor, depending on U.S. productivity. D) neither capital nor labor.
Economics