Describe the pattern of growth rates in real GDP per hour worked in the United States since the early nineteenth century. Has output per hour worked consistently increased at the same rate? Explain
What will be an ideal response?
Growth in real GDP per hour worked averaged 1.3% throughout the nineteenth century and then increased to over 2% until the mid-1970s (when it fell to 1.3% again). Productivity slowed dramatically during the mid-1970s, but the emergence of the "new economy" saw average annual growth rates in GDP per hour worked rebound to 2.4% from 1996 - 2005, and then slowed to 1.2% from 2006-2014.
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A natural monopoly's average cost curve i. intersects the demand curve while the average cost curve slopes downward
ii. reaches its minimum before it intersects the demand curve. iii. intersects the demand curve below the intersection of the marginal cost curve and the demand curve. A) i only B) ii only C) iii only D) i and iii E) i, ii, and iii
When real GDP grows more slowly than potential GDP,
a. nominal GDP rises. b. the unemployment rate falls. c. labor productivity falls. d. the unemployment rate rises.