If the current unemployment rate is equal to the natural unemployment rate, then current Real GDP is
A) greater than Natural Real GDP.
B) equal to Natural Real GDP.
C) equal to the Real GDP produced at full employment.
D) less than Natural Real GDP.
E) b and c
E
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Absorption refers to
A) the total amount of imports purchased by a country. B) the net amount of imports purchased by a country. C) total spending by domestic residents, businesses, and governments. D) GDP less desired consumption, desired investment, and government purchases.
If oil prices fall at the same time that the federal government increases its purchases, in the short run
A) aggregate output and the price level will both increase. B) aggregate output will increase, but the price level will fall. C) aggregate output and the price level will both fall. D) aggregate output will increase, but the price level may either increase or decrease.