Suppose Germany's economy is experiencing full employment. This means that, in Germany,
A) the unemployment rate is equal to zero.
B) real GDP is equal to potential GDP.
C) real GDP is greater than potential GDP.
D) potential GDP is greater than real GDP.
E) real GDP equals nominal GDP.
B
Economics
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Say's law explains
A) how long-run real Gross Domestic Product (GDP) stability is achieved in the Keynesian model. B) why economies experience business cycles. C) how the economy can go into recession. D) how long-term real Gross Domestic Product (GDP) stability is achieved in the classical model.
Economics
Which of the following is not a property of a competitive equilibrium?
A) markets clear. B) consumers and firms optimize given market prices. C) the government budget constraint is satisfied. D) increasing total factor productivity.
Economics