26)In the last decade, nominal GDP grew by 40 percent, prices grew by 25 percent and the population grew by five percent. Over the decade, GDP per capita grew by...

a.12 percent.

b.8.4 percent.

c.6.7 percent.

d.3.2 percent.

27)In the function, Y = A x F(K, N), A is often referred to as...

a.Full employment labour.

b.Total factor productivity.

c.Potential output.

d.The production function.

28)An economy operating at full employment has...

a.An employment rate of 100 percent.

b.Natural unemployment.

c.A labour force participation rate of 100 percent.

d.Zero unemployment.