« previous next »

Author Question: How are potential GDP, full employment and the LAS curve related? What will be an ideal ... (Read 79 times)

chads108

  • Hero Member
  • *****
  • Posts: 507
on: Jun 29, 2018
How are potential GDP, full employment and the LAS curve related?
 
  What will be an ideal response?

Question 2

If a Lorenz curve moves leftward and becomes closer to the line of equality over time, then
 
  A) the population is growing.
  B) income is growing.
  C) income is being more equally distributed.
  D) income is being more unequally distributed.
Macroeconomics: Principles, Applications and Tools ¦ O'Sullivan, Sheffrin, Perez ¦ 7th Edition
Buy Test-Bank


Jane

  • Sr. Member
  • ****
  • Posts: 309
Reply #1 on: Jun 29, 2018
Answer to Question 1

When the economy is at full employment there is no cyclical unemployment and the economy is at its potential level of real GDP. The LAS curve is vertical at the level of potential real GDP.

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

About one in five American adults and teenagers have had a genital herpes infection—and most of them don't know it. People with genital herpes have at least twice the risk of becoming infected with HIV if exposed to it than those people who do not have genital herpes.

Did you know?

The most common treatment options for addiction include psychotherapy, support groups, and individual counseling.

Did you know?

Patients should never assume they are being given the appropriate drugs. They should make sure they know which drugs are being prescribed, and always double-check that the drugs received match the prescription.

Did you know?

Colchicine is a highly poisonous alkaloid originally extracted from a type of saffron plant that is used mainly to treat gout.

Did you know?

As the western states of America were settled, pioneers often had to drink rancid water from ponds and other sources. This often resulted in chronic diarrhea, causing many cases of dehydration and death that could have been avoided if clean water had been available.

Range of Motion of the Hip Joint, Position of the Leg for Full External Rotation Range of Motion of the Hip Joint, Position of the Leg for Full External Rotation
Procedures for Diagnostic Tests Related to the Musculoskeletal system Procedures for Diagnostic Tests Related to the Musculoskeletal system
Effect-log dose curve for the analgesic action of three narcotics and aspirin. Hydromorphone is more ... Effect-log dose curve for the analgesic action of three narcotics and aspirin. Hydromorphone is more ...
Dental Related Adverse Effects in Patients Undergoing Cancer Treatment Dental Related Adverse Effects in Patients Undergoing Cancer Treatment
Humans are related to Earth’s other organisms Humans are related to Earth’s other organisms
Estimating Potential Blood Volume Loss (Part 1) Estimating Potential Blood Volume Loss (Part 1)
Video: Import of Dietary Glucose from Intestines to Bloodstream

For a complete list of videos, visit our video library