Suppose u = those adults who are unemployed and seeking work; e = those adults who are employed; and NLF = those adults not in the labor force. Which expression would equal the BLS definition of the unemployment rate?

If the aggregate supply curve is horizontal, an increase in aggregate demand will

A) increase both real and nominal GDP by the full multiplier effect. B) increase nominal GDP but not real GDP. C) increase the price level but not real GDP. D) increase real GDP by less than the full multiplier effect because of rising prices.

Public goods are characterized by the free-rider problem because

A) no one can be excluded from the benefits of public goods once they are produced. B) public goods are usually things that people really do not want to consume. C) public goods are characterized by the principle of rival consumption. D) public goods can easily be subdivided into small units.