The amount of price inflation that the economy experiences eventually depends on the size of the spending multiplier.

The rate of unemployment that occurs when the economy is producing its potential GDP _____

a. is called the natural rate of unemployment b. is zero c. is thought to be approximately 10% d. can be kept at zero through fiscal policy e. is equal to the rate of stagflation in most years

Because government agencies lack the kind of competition found in the marketplace, they also can lack:

a. profits. b. efficiency. c. cohesion. d. accountability.