Suppose an Economy Is Operating at Its Maximum Sustainable Output

question 67

Multiple Choice

Suppose an economy is operating at its maximum sustainable output rate. Neither recession nor economic boom are present. Which of the following would be true?

• A) The economy would be considered at full employment.
• B) Actual GDP would exceed potential GDP.
• C) Actual unemployment will be less than the natural rate of unemployment.
• D) One hundred percent of the labor force is employed.

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Definitions:

Nicastro v. McIntyre

A Supreme Court case that deals with jurisdiction issues, specifically whether a foreign manufacturer can be sued in a U.S. state court for injuries caused by its products in that state.

Federal Court System

The system of courts operated by the federal government of the United States, which deals with issues of law and justice that fall under federal jurisdiction.

Monetary Judgment

A court order requiring one party to pay a certain sum of money to another party.

Cross-Appeal

An appeal filed by a party that has prevailed at trial.