The Table Below Provides Macroeconomic Data for a Hypothetical Economy

question 29

Multiple Choice

The table below provides macroeconomic data for a hypothetical economy.Dollar amounts are all in constant-dollar terms. TABLE 19-1 Refer to Table 19-1.In the year 2015,it is probably the case that workers are ________ and factories are ________.

• A)facing cyclical unemployment; facing temporary shut downs
• B)working longer than normal hours; facing temporary shutdowns
• C)experiencing zero unemployment; operating extra shifts
• D)experiencing zero unemployment; operating beyond their normal capacity
• E)working longer than normal hours; operating beyond their normal capacity

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Definitions:

Budget Constraints

The limitations on the consumption bundles that a consumer can afford, given their income and the prices of goods and services.

Relative Prices

The price of one good or service compared to another, usually expressed as a ratio.

Price of Good

The amount of money required to purchase a specific product or service.

Affordable Consumption Options

Economically accessible choices available to consumers for goods and services within their budget constraints.