When an Economy Is Operating at Its Full Employment Rate

question 93

Multiple Choice

When an economy is operating at its full employment rate of output,

• A)the rate of unemployment will be zero.
• B)output will exceed the economy's maximum sustainable rate.
• C)the actual rate of unemployment will equal the natural rate.
• D)the economy's potential rate of output will exceed actual GDP.

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Definitions:

Import Quotas

Limits set by a government on the amount or number of goods that can be imported into a country over a set period of time.

Foreign Sovereign Immunities Act

A U.S. law that sets limitations on lawsuits against foreign governments in U.S. courts, establishing certain conditions under which foreign sovereigns are not immune from litigation.

Jurisdiction

The authority given to a legal body to administer justice within a defined field of responsibility.

ICJ

Stands for the International Court of Justice, which is the principal judicial organ of the United Nations, responsible for settling legal disputes between states and giving advisory opinions.