This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: When the unemployment rate _________ the natural unemployment rate, real GDP is _________ potential ... (Read 124 times)

bobbie

  • Hero Member
  • *****
  • Posts: 592
on: Jun 29, 2018
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
Reply #1 on: Jun 29, 2018
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
Excellent

bblaney

  • Member
  • Posts: 323
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

The human body produces and destroys 15 million blood cells every second.

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

Immunoglobulin injections may give short-term protection against, or reduce severity of certain diseases. They help people who have an inherited problem making their own antibodies, or those who are having certain types of cancer treatments.

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

Did you know?

The average human gut is home to perhaps 500 to 1,000 different species of bacteria.

Permeability to Ions During the Action Potential Permeability to Ions During the Action Potential
Activated Natural Killer Cell (NK Cell) Activated Natural Killer Cell (NK Cell)
Advection of an air mass with a different ELR (environmental lapse rate). Advection of an air mass with a different ELR (environmental lapse rate).
Natural Hazards: Earth's Processes as Hazards, Disasters, and Catastrophes, 4th Edition Natural Hazards: Earth's Processes as Hazards, Disasters, and Catastrophes, 4th Edition
Resting Membrane Potential: Voltage Difference Resting Membrane Potential: Voltage Difference
Compute the rate of discount allowed on a rontor -tiller that lists for K 341 and is sold for K ... Compute the rate of discount allowed on a rontor -tiller that lists for K 341 and is sold for K ...
Video: Interview with an Anorexic Woman (Part 1 of 2)

For a complete list of videos, visit our video library