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If the Economy Is at an Above Full-Employment Equilibrium, ________

question 192

Multiple Choice

If the economy is at an above full-employment equilibrium, ________ gap exists and discretionary fiscal policy that ________ will return real GDP to potential GDP.


Definitions:

Labor Force

The total number of people who are employed and those who are actively seeking employment.

Bureau of Labor Statistics

A US government agency that collects, processes, and disseminates essential statistical data on labor economics, including employment, wages, and productivity.

Unemployed

Refers to people who are without a job and have actively looked for work within the recent past.

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