When the labor market is at full employment A) real GDP equals ...

[penguins]

When the labor market is at full employment
 
  A) real GDP equals potential GDP.
  B) the price level is stable.
  C) the price level equals the potential price level.
  D) the short run aggregate supply curve is horizontal.

Question 2

If Ford sells 200 Explorers for a total of 400,000 to Germany, while the United States imports 100 BMWs for a total of 500,000 from Germany
 
  A) U.S. GDP increases because it sells more Explorers.
  B) U.S. GDP decreases because net exports are negative.
  C) Germany's GDP decreases.
  D) U.S. net exports is positive.

[jasonq]

Answer to Question 1

A

Answer to Question 2

B