Actual Real GDP This Year Is Expected to Exceed Last

question 68

Multiple Choice

Actual real GDP this year is expected to exceed last year's by two percent,while the annual growth rate of natural real GDP is three percent.This is enough to lead us to expect that this year's unemployment rate will be

• A)below last year's and below the natural rate of unemployment.
• B)below last year's but still above the natural rate of unemployment.
• C)below last year's.
• D)above last year's.
• E)above last year's and above the natural rate of unemployment.

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Definitions:

Price Taker

A market participant that accepts market prices as given and cannot influence those prices.

Monopolies

Market situations where a single company or entity has exclusive control over a particular product or service, leading to less competition.

Average Total Cost

The total cost of production divided by the quantity produced, representing the average cost per unit.

Short Run

A period in economics where at least one factor of production is fixed and cannot be changed.