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Which of the following does not occur when real GDP rises above potential GDP? Select one: a. The unemployment rate falls below the natural unemployment
Which of the following does not occur when real GDP rises above potential GDP? Select one: a. The unemployment rate falls below the natural unemployment rate. Ob. Firms increase their prices. O c. The unemployment rate rises above the natural unemployment rate. O d. The capacity utilization rate increases.The consumption function shows the relationship between consumption and Select one: O a. the interest rate. O b. income. O c. the money supply. O d. the price level. O e. potential GDP.Expenditure E = C+I+G+X B 450 Income or real GDP If spending were equal to the amount corresponding to point B, Select one: O a. real GDP would decrease. O b. the expenditure line would shift down. O c. real GDP would increase. O d. the marginal propensity to consume would increase
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