If the natural unemployment rate is 4 percent and potential GDP is $30 billion, then according to Okun's Law, when the unemployment rate falls to 3 percent, real GDP
A) decreases to $29.4 billion.
B) first decreases by 4 percent and then increases by 4 percent.
C) increases to $60 billion.
D) increases to $30.6 billion.
E) remains constant at $30 billion.
D
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Which of the following policy tools is the federal reserve the least likely to use in order to actively change the money suppl
A. Discount rate B. Discount loans C. Reserve requirements
Think of the firms and industries that are familiar to you—how many firms in the industry, what their cost structures may look like—and decide which among them is least likely to be a natural monopoly
a. a professional football franchise in Toledo, Ohio b. a pharmaceutical firm that produces a life-saving drug after 10 years of research investment c. a public utilities firm, such as an electric power company d. a high school in a small rural Kentucky town e. an alternative rock band