In the table above, what is the level of unemployment (in millions of workers) if the minimum wage is set at $8 per hour?

What is potential GDP?

A) It is the level of real GDP in the short run. B) It is the difference between current GDP and maximum GDP. C) It is the level of GDP at which inflation is constant. D) It is the level of real GDP in the long run.

If an unanticipated decrease in aggregate demand results in an output below the economy's long-run capacity, long-run equilibrium will eventually be restored by

a. an increase in the rate of inflation. b. lower resource prices and lower real interest rates. c. higher resource prices and higher real interest rates. d. a decrease in the natural rate of unemployment.