Multiple Choice
If all prices adjusted immediately to balance the quantities supplied and demanded for all goods and services:
A) output gaps would not exist.
B) output gaps would be positive more often than they would be negative.
C) cyclical unemployment would be positive.
D) potential GDP would rise much more quickly.
Correct Answer:
Verified
Correct Answer:
Verified
Q8: The following data give the dates
Q9: If the natural rate of unemployment equals
Q10: The increase in the unemployment rate during
Q11: According to the Congressional Budget Office, from
Q12: Economic activity moves from a trough into
Q14: Recessions begin at _ and end at
Q15: According to Okun's law, when cyclical unemployment
Q16: In Okunland, a country whose economy operates
Q17: Suppose the actual rate of unemployment is
Q18: If potential output equals $8 billion and