When the Labor Market Is in Equilibrium So That the Quantity

question 252

Multiple Choice

When the labor market is in equilibrium so that the quantity of labor supplied equals the quantity demanded,

• A)there is no unemployment.
• B)the economy is fully employed.
• C)nominal GDP equals real GDP.
• D)there is no inflation.
• E)real GDP might be more than, less than, or equal to potential GDP.

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Definitions:

Positive Constants

Fixed values greater than zero used in mathematical equations or expressions.

Payoffs

The returns or outcomes received from a particular action or investment.

Dominant Strategy Equilibrium

A situation in game theory where each participant's best strategy remains constant regardless of what strategies others choose.

Optimal Choice

The best possible selection from a set of alternatives, given constraints and objectives.