Which of the following is the formula for the potential growth rate?
A) The potential growth rate equals the long-term labor force growth rate plus the long-term productivity growth rate.
B) The potential growth rate equals the short-term growth rate plus the long-term aggregate productivity growth rate.
C) The potential growth rate equals the short-term growth rate plus the long-term productivity growth rate.
D) The potential growth rate equals the short-term aggregate growth rate minus the long-term productivity growth rate.
Correct Answer:
Verified
Q17: Structural unemployment exists when
A) the construction industry
Q18: The underemployed are those people who are
A)
Q19: The unemployment rate includes
A) people not working
Q20: The natural rate of unemployment is
A) 5%.
B)
Q21: The rate at which potential GDP rises
Q23: The difference between actual and potential GDP
Q24: Problems in _ are another possible cause
Q25: When unemployment is above the natural rate,
A)
Q26: _ policies of the government can also
Q27: Negative demand shifts can
A) be defined as
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