Author Question: In 2012, real GDP in the United States was below potential GDP. This fact definitely means that ... (Read 54 times)

Medesa · **on:** Jun 29, 2018

In 2012, real GDP in the United States was below potential GDP. This fact definitely means that

A) the unemployment rate was near 10 percent.
B) the unemployment rate was above the natural unemployment rate.
C) the economy was in an expansion.
D) cyclical unemployment had been decreasing.
E) frictional unemployment was negative.

Question 2

At full employment there still exists some unemployment because

A) some portion of our population will always be too lazy to work.
B) there are always people too old or young to be in the labor force.
C) the U.S. economy is constantly creating and destroying jobs.
D) it is unnatural to have all people work 40 hours per week.
E) real GDP can never exceed potential GDP.