This topic contains a solution. Click here to go to the answer

Author Question: When the unemployment rate _________ the natural unemployment rate, real GDP is _________ potential ... (Read 91 times)

bobbie

  • Hero Member
  • *****
  • Posts: 592
When the unemployment rate _________ the natural unemployment rate, real GDP is _________ potential GDP and the output gap is _________.
 
  A. exceeds; below; negative
  B. is below; below; negative
  C. exceeds; above; positive
  D. is below; above; negative

Question 2

Explain the optimal strategy that a price discriminating firm would use when pricing in markets with different elasticities.
 
  What will be an ideal response?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

vickyvicksss

  • Sr. Member
  • ****
  • Posts: 351
Answer to Question 1

A When the unemployment rate exceeds the natural unem-ployment rate, the economy is in a recession with real GDP is less than potential GDP so the output gap is negative.

Answer to Question 2

The optimal strategy for a firm that can sell in more than one market is to charge higher prices in markets with low demand elasticities and vice versa.




bobbie

  • Member
  • Posts: 592
Reply 2 on: Jun 29, 2018
:D TYSM


apple

  • Member
  • Posts: 352
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

To maintain good kidney function, you should drink at least 3 quarts of water daily. Water dilutes urine and helps prevent concentrations of salts and minerals that can lead to kidney stone formation. Chronic dehydration is a major contributor to the development of kidney stones.

Did you know?

After a vasectomy, it takes about 12 ejaculations to clear out sperm that were already beyond the blocked area.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

Did you know?

Malaria mortality rates are falling. Increased malaria prevention and control measures have greatly improved these rates. Since 2000, malaria mortality rates have fallen globally by 60% among all age groups, and by 65% among children under age 5.

For a complete list of videos, visit our video library