When Real GDP Is Greater Than Potential Output,the Unemployment Rate

question 64

Multiple Choice

When real GDP is greater than potential output,the unemployment rate ________ the NAIRU.

• A)falls toward
• B)falls below
• C)rises toward but never exceeds
• D)is equal to
• E)rises above

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Definitions:

Price Floor

A government- or authority-imposed minimum price that can be charged for a good or service, typically set above the equilibrium price to aid producers.

Subsidizing Federal

Financial support from the federal government to help reduce the cost of goods and services or to encourage investment in specific sectors.

Higher Education

Post-secondary education provided by universities and colleges that leads to an academic degree or vocational qualification.

Selfishness

The act of putting one's own needs and desires above the needs of others.