If the economy is fully employed, which of the following is true?
A) Real and potential GDP are equal.
B) The price level equals 100.
C) Real GDP cannot increase.
D) Real and nominal GDP are equal.
E) The unemployment rate is zero.
Correct Answer:
Verified
Q143: When the labor market is in equilibrium
Q144: If the government raises income taxes, then
Q145: Which of the following creates job rationing?
A)Job
Q146: Efficiency wages are
A)set below the equilibrium level
Q147: Diminishing returns means that
A)hiring more labor results
Q148: To maximize profits, firms hire labor as
Q149: The level of real GDP the economy
Q151: The increase in the average unemployment rate
Q152: Diminishing returns along a production function means
Q153: Which of the following will increase the
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