The Natural Level of Output Is the Level of Output

question 50

Multiple Choice

The natural level of output is the level of output that occurs when:

• A) the unemployment rate is zero.
• B) the markup is zero.
• C) the economy is operating at the unemployment rate consistent with both the wage- setting and price- setting equations.
• D) both the goods and financial markets are in equilibrium.
• E) there are no discouraged workers in the economy.

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Definitions:

Producer Trophic Level

The first level in a food web, comprised of organisms that produce organic materials (usually through photosynthesis) from inorganic substances.

Base

A substance that can accept hydrogen ions (protons) or more generally, donate a pair of valence electrons; in nucleic acids, a nitrogen-containing molecule that forms part of the genetic code.

Denitrifying Bacteria

Bacteria involved in the nitrogen cycle, converting nitrates in soil into nitrogen gas, thereby reducing nitrogen availability to plants.

Nitrate

A polyatomic ion with the chemical formula NO3− or a compound containing this ion; important in the nitrogen cycle and used in fertilizers.