1. The reasons why prices are inflexible downward are: a.. investments in training, morale and productivity b. wage contracts, minimum wage, morale and productivity c. wage contracts, investments in training, morale and productivity d. wage contracts and the minimum wage 2. Full employment occurs when the amount: a. of GDP consumed equals real GDP b. of potential GDP equals real GDP c. demanded of labor equals the quantity of labor supplied d. demanded of labor is equal to the quantity of labor supplied and potential GDP is equal to real GDP

1. The reasons why prices are inflexible downward are: a.. investments in training, morale and productivity b. wage contracts, minimum wage, morale and productivity c. wage contracts, investments in training, morale and productivity d. wage contracts and the minimum wage 2. Full employment occurs when the amount: a. of GDP consumed equals real GDP b. of potential GDP equals real GDP c. demanded of labor equals the quantity of labor supplied d. demanded of labor is equal to the quantity of labor supplied and potential GDP is equal to real GDP

MACROECONOMICS

14th Edition

ISBN:9781337794985

Author:Baumol

Publisher:Baumol

Chapter8: Aggregate Demand And The Powerful Consumer

Section8.A: National Income Accounting

Problem 3TY

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Question

1. The reasons why prices are inflexible downward are:

a.. investments in training, morale and productivity

b. wage contracts, minimum wage, morale and productivity

c. wage contracts, investments in training, morale and productivity

d. wage contracts and the minimum wage

2. Full employment occurs when the amount:

a. of GDP consumed equals real GDP

b. of potential GDP equals real GDP

c. demanded of labor equals the quantity of labor supplied

d. demanded of labor is equal to the quantity of labor supplied and potential GDP is equal to real GDP

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