As the unemployment rate increases, A) potential GDP ...

[jrubin]

As the unemployment rate increases,
 
  A) potential GDP decreases.
  B) real GDP decreases.
  C) both real GDP and potential GDP decrease.
  D) potential GDP increases.
  E) full employment GDP decreases.

Question 2

Information asymmetry in a market can lead to ________.
 
  A) a market failure
  B) the paradox of thrift
  C) the free-rider problem
  D) a tragedy of the commons

[fdliggud]

Answer to Question 1

B

Answer to Question 2

A