The obsolete maximum an economy can produce given the abatable energy The GDP th

Question

The obsolete maximum an economy can produce given the abatable energy The GDP that would be produced if there was no disincentives from taxes The output that is possible when there is no inflation The output an economy could produce if it was at full employment The people who gave up looking for work and dropped out of the labor force are considered Retired Unemployed Underemployed Discouraged workers An increase in Americans' demand for vehicles made in Europe increases the demand for euros and so the euro appreciates increases the demand for dollars and so the euro depreciates decreases the demand for euros and so the euro appreciates increases the supply of euros and so the euro depreciates

Explanation / Answer

Answer: Question 46 : (d)

Potential GDP is also called the Production Possibility Frontier (PPF), which is the maximum possible output in an economy, which can be produced if all the factors of production in that economy is fully employed. ( There are alternate combination of products that an economy an produce. What combination the economy chooses to produce will depend on the comparative advantage it enjoys with regards to other economies..)

Answer to Question 47: ( b)

Unemployment occurs when a person who wants to work and is actively looking for work is unable to find a job. Unemployment rate is often used as a proxy for measuring the health of an economy.

Answer: Question 48: (a)

People in the USA can buy European made cars, if they can pay for the car in Euros. Because that is the legal tender in the EEC. Therefore to buy that car, the American needs to get Euros. This increase the demand for Euros. If the supply of Euros is not sufficient to meet this demand, then Euro will appreciate.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.