Exploring Macroeconomics
8th Edition
ISBN: 9781544337722
Author: Robert L. Sexton
Publisher: SAGE Publications, Inc
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Question
Chapter 11, Problem 11P
To determine
(a)
To explain:
Whether the real
To determine
(b)
To explain:
Whether the real gross domestic product can increase while the real gross domestic product per capita falls.
To determine
(c)
To explain:
Whether at the time when the real GDP per capita falls the real consumption possibilities can expand.
To determine
(d)
To explain:
The way varying leisure amounts can affect the comparisons of real well-being.
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1. The maximum amount of production that can be produced while avoiding shortages of labor, capital, land, and entrepreneurship that would bring rising inflation is called
A) real GDP.
B) nominal GDP.
C) actual GDP.
D) potential GDP.
2. Potential GDP is
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B) the level of GDP achieved during periods when 100 percent of the labor force is employed.
C) a goal that can never be achieved by the economy.
D) the maximum amount of GDP that can be produced while avoiding shortages of labor, capital, land, and entrepreneurship that would bring rising inflation.
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B) real GDP never equals potential GDP.
C) real GDP fluctuates about potential GDP.
D) real GDP is always below potential GDP.
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