Unemployment will decrease over time if:
a. actual GDP increases faster than potential GDP.
b. actual GDP increases at the same rate as potential GDP.
c. acutal GDP remains the same but potential GDP increases.
d. actual GDP increases at a less than proportionate rate than potential GDP.
e. actual GDP decreases but potential GDP increases.
Question 2
To an economist, individuals are acting rationally if they are striving to do their best to achieve their goals.
a. True
b. False
Indicate whether the statement is true or false
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