When the Actual Unemployment Rate Is Equal to the Natural

question 35

Multiple Choice

When the actual unemployment rate is equal to the natural rate of unemployment:

• A) the unemployment rate is zero.
• B) potential output exceeds actual output.
• C) the output gap is zero.
• D) actual output exceeds potential output.

Interpret the relationship between economies of scale, diseconomies of scale, and long-run cost curves.

Comprehend the relationship between output levels and average/marginal costs.

Grasp the idea of economies and diseconomies of scope.

Appreciate the significance of returns to scale on long-run costs.

---

Definitions:

Cells Group

A collection of adjacent cells, typically in a spreadsheet, that are treated as a single entity for formatting or data manipulation purposes.

Zoom Slider

A graphical control element allowing users to change the magnification level of a document, image, or map.

Status Bar

A graphical control element at the bottom of a window that displays information about the current status of the application or document.

Office Clipboard

A feature within Microsoft Office applications that allows users to copy and store multiple items across Office programs.