In the above figure, the equilibrium real wage rate is

A) $10 per hour.
B) $15 per hour.
C) $20 per hour.
D) none of the above

B

Economics

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An inflationary gap will occur when

a. real GDP exceeds nominal GDP. b. nominal GDP exceeds real GDP. c. real GDP exceeds potential GDP. d. potential GDP exceeds real GDP

Economics

The economy of Alpha operates according to Okun's law. In Alpha, potential GDP equals $500 billion, actual GDP equals $520 billion, and the natural rate of unemployment is 5 percent. What is the actual rate of unemployment in Alpha?

A. 4 percent B. 7 percent C. 1 percent D. 3 percent

Economics