Over a relatively short period of time wages and prices would require massive government intervention to bring the economy back to full employment. Over a relatively short period of time wages and prices would adjust quickly and naturally to bring the economy back to full employment.
7) Define 'Full Employment Output'. The level of output that results when the labor market is in equilibrium and the economy is producing at full employment. 8) Explain the Taxes and Potential Output diagram.
Two economists differ on their estimates of the natural rate of unemployment. One economist believes it is 5 ​percent, while the other believes it is 4 percent. All else being​ equal, the economist who estimates the natural rate at ________ will estimate a higher value for potential output.
how the total level of output or GDP in the economy is generated from the factors of production. All of the above. The following table shows input and output for the production function. Consider the stock of capital to be fixed.