In an economy, if structural unemployment decreases while theother types of unemployment remain unchanged, then (circle theletter representing the right answer below)A) the natural rate of unemployment and potential GDP willremain unchanged.B) the natural rate of unemployment and potential GDP will bothdecrease.C) the natural rate of unemployment will increase and potentialGDP will decrease.D) the natural rate of unemployment will decrease and potentialGDP will increasef) In words, discuss the limitations of the neoclassical analysiswith respect to closing a recessionary gap.
In an economy, if structural unemployment decreases while theother types of unemployment remain unchanged, then (circle theletter representing the right answer below)A) the natural rate of unemployment and potential GDP willremain unchanged.B) the natural rate of unemployment and potential GDP will bothdecrease.C) the natural rate of unemployment will increase and potentialGDP will decrease.D) the natural rate of unemployment will decrease and potentialGDP will increasef) In words, discuss the limitations of the neoclassical analysiswith respect to closing a recessionary gap.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
In an economy, if structural unemployment decreases while the
other types of unemployment remain unchanged, then (circle the
letter representing the right answer below)
A) the natural rate of unemployment and potential GDP will
remain unchanged.
B) the natural rate of unemployment and potential GDP will both
decrease.
C) the natural rate of unemployment will increase and potential
GDP will decrease.
D) the natural rate of unemployment will decrease and potential
GDP will increase
f) In words, discuss the limitations of the neoclassical analysis
with respect to closing a recessionary gap.
other types of unemployment remain unchanged, then (circle the
letter representing the right answer below)
A) the natural rate of unemployment and potential GDP will
remain unchanged.
B) the natural rate of unemployment and potential GDP will both
decrease.
C) the natural rate of unemployment will increase and potential
GDP will decrease.
D) the natural rate of unemployment will decrease and potential
GDP will increase
f) In words, discuss the limitations of the neoclassical analysis
with respect to closing a recessionary gap.
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