When the unemployment rate _ the natural unemployment rate, real GDP is _ potential GDP and the

Question:

When the unemployment rate _________ the natural unemployment rate, real GDP is _________ potential GDP and the output gap is _________.

A. Exceeds; below; negative

B. Is below; below; negative

C. Exceeds; above; positive

D. Is below; above; negative

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Foundations of Macroeconomics

ISBN: 978-0134492001

8th edition

Authors: Robin Bade, Michael Parkin

See More Books

Question Posted: May 18, 2018 02:48 AM

See More Questions

There are three possible states of an economy. 1. Describe the relationship between Real GDP and Natural Real GDP in the three states of an economy. 2. Describe the relationship between the...
Potential GDP is the value of real GDP when ______. A. The unemployment rate equals the natural unemployment rate B. There is no frictional unemployment C. There is no structural unemployment D. The...
Economists believe that the natural rate of unemployment changes over time, although they often have difficulty pinning down an exact estimate. Policymakers need to have an accurate assessment of the...
Explain the economic basis for the U shape of the long-run average total cost curve.
The horsepower H required to overcome wind drag on a particular automobile is given by H(x) = 0.00004636x3 where x is the speed of the car (in miles per hour). (a) Use a graphing utility to graph the...
Suppose that a random variable X can take only the two values a and b with the following probabilities: Pr(X = a) = p and Pr(X = b) = 1 p. Express the p.f. of X in a form similar to that given in Eq....
Four different railroad-track cross-section configurations were tested to determine which is most resistant to breakage under use conditions. Ten miles of each kind of track were laid in each of 5...
The income statement and additional data of Bolton Travel Products, Inc., follow: Additional data: a. Acquisition of plant assets was $130,000. Of this amount, $75,000 was paid in cash and $55,000 by...
Why is the course developmental psychology an important pre-requisite for psychopathology course. Why is knowing developmental psychology important in diagnosis?
Jack, a geologist, had been debating for years whether or not to venture out on his own and operate his own business. He had developed a lot of solid relationships with clients and he believed that...
The economy is at full employment when all unemployment is ________. A. Structural B. Cyclical C. Structural and cyclical D. Structural and frictional
In Canada, the reference base period for the CPI is 2002. By 2014, prices had risen by 25.2 percent since the base period. The inflation rate in Canada in 2015 was 1.1 percent. Calculate the CPI in...
Refer to the Auditing in Practice feature, The Great Salad Oil Swindle of 1963, and answer the following questions. a. How did management perpetrate the fraud? b. What was managements incentive to...
What might be the impact of these observed and projected future changes on the city/country/region where you live and work?
Who are the key stakeholders for your organization? Be as specific as possible.
Why might financial decision-making not take environmental goals into account?
Which industry (ie non-finance) sectors would you currently associate with green finance?
Of the two scenarios presented in this section, which would you prefer to live and work in: 1. Fast forward, or 2. Slow motion? Why?
A battleship is using sonar (reflected underwater sound signals) to detect the presence of nearby submarines. It is found that a sonar reflection has a round-trip travel time (from the battleship to...
White Bolder Investments (WBI) You are an intern working for WBI, a large investment advisory services in Sydney. Among other regular customers, WBI has been providing advisory services for Jumbo...
Comment on the following assertion: "If the trends in schooling continue, at some point in the future, everyone will have a college degree and no one will be available to work as a janitor or garbage...
Classify the following countries as advanced or developing countries: Australia, Chile, China, France, India, Indonesia, Hong Kong, Mexico, Nigeria, and Peru.
Think about the trends in what and how goods and services are produced in the U.S. and global economies. Do you think that at some future time, there will be no jobs in the United States and all the...
Marea's Cakes sells its cakes for $30 each. Ingredients cost Marea on average $10 per cake and she pays her baker $10 per cake. For the upcoming year, Marea's fixed costs will be $50,000 and she...
The statement of cash flow consists of three main activities, as follows: Operating Investing Financing Each section provides the reader with details on where the cash came from and where the cash...
How would i calculate the desired ROI per unit based on this information: $65Per Unit Direct Materials $48.00Per Unit Direct Labour $16.00Per Unit Variable Manufacturing Overhead $12.00Per Unit...

When the unemployment rate _________ the natural unemployment rate, real GDP is _________ potential GDP and the

Question:

Step by Step Answer:

Answer A When the unemployment rat...View the full answer

Foundations of Macroeconomics

Students also viewed these Business questions

When the unemployment rate _ the natural unemployment rate, real GDP is _ potential GDP and the