Potential GDP is the value of real GDP when ______
A. the unemployment rate equals the natural unemployment rate
B. there is no frictional unemployment
C. there is no structural unemployment
D. the unemployment rate is zero
A When real GDP equals potential GDP, the unemployment rate equals the natural unemployment rate.
You might also like to view...
With eminent domain, landowners ________ in the gains that result from the taking of their property, and with private bargaining, landowners ________ in the gains that result from the taking of their property
A) share; share B) share; do not share C) do not share; share D) do not share; do not share
Which of the following represents a capital budgeting problem for multinational corporations but not for domestic corporations?
A) determining the cost of capital B) calculating after-tax cash flows C) selecting the appropriate risk-adjusted rates of return D) None of the above