If the economy is fully employed, which of the following is true?
A) The price level equals 100.
B) Real and nominal GDP are equal.
C) Real and potential GDP are equal.
D) The unemployment rate is zero.
E) Real GDP cannot increase.
C
Economics
You might also like to view...
In September 1992, Great Britain changed its exchange rate system. How?
A) It abandoned the gold standard in favor of pegging to the U.S. dollar. B) It joined in with the new euro. C) It switched from an exchange rate peg to floating. D) It abandoned the sterling backing for the British pound.
Economics
In the coordination failure model, how is a particular equilibrium attained?
A) The Federal Reserve picks it. B) It depends on total factor productivity shocks. C) It depends on money supply shocks. D) because people expect it to be the equilibrium.
Economics