If the Economy Were at Its Potential Output Level,which of the Following

question 204

Multiple Choice

If the economy were at its potential output level,which of the following is not true?

• A)The actual unemployment rate would equal the natural rate.
• B)There would be some cyclical unemployment.
• C)There would be some seasonal unemployment.
• D)There would be some frictional unemployment.
• E)There would be some structural unemployment.

Explain the characteristics and benefits of a market economy.

Describe the implications of private ownership and free exchange.

Understand the economic rationale for specialization and division of labor.

Analyze the impact of trade on economic output and progress.