If New Zealand Is Operating at Potential GDP, Which of the Following

question 49

Multiple Choice

If New Zealand is operating at potential GDP, which of the following is true?
i) New Zealand only has frictional and structural unemployment.
ii) There is no inflation in New Zealand.
iii) New Zealand has positive net exports.

• A)i and ii
• B)i only
• C)i and iii
• D)i, ii and iii
• E)ii only

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Definitions:

Zero-Sum Game

A game theory concept where one participant's gain or loss is exactly balanced by the losses or gains of the other participant(s).

Negative-Sum Game

A situation in which the total losses incurred by the participants are greater than the total gains.

Strategic Game

A situation or model in game theory in which players make decisions by strategically considering the choices and payoffs of other players.