The natural level of output is the level of output that occurs when
A) the goods market and financial markets are in equilibrium.
B) the economy is operating at the unemployment rate consistent with both the wage-setting and price-setting equations.
C) the markup (m) is zero.
D) the unemployment rate is zero.
E) there are no discouraged workers in the economy.
B
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Exchange of developing country debt (at a discount) for private ownership of state-owned assets is called
(a) debt-equity swaps. (b) debt restructuring. (c) the Brady Plan. (d) debt-nature swaps.
An incentive is:
A. the marginal cost of engaging in a course of action. B. the marginal benefit of engaging in a course of action. C. something that causes people to behave in a certain way by changing trade-offs they face. D. rational behavior that involves thinking on the margin.