The production possibility frontier shows the boundary between ____________.

those combinations of goods and services that can be consumed and those that cannot
those combinations of goods and services that can be produced and those that cannot
leisure and work
real GDP and the quantity of labor employed

The _______ shows how real GDP varies as the quantity of labor employed varies, other things remaining the same.

labor supply curve
production function
short-run aggregate supply curve
labor demand curve

Factors that influence labor productivity include _______________________.

physical capital, the real wage rate, and technology
physical capital, human capital, and technology
the inflation rate, the real wage rate, and the exchange rate
physical capital, human capital, and the real wage rate

The demand for labor is the relationship between _______, when all other influences on firms' hiring plans remain the same.

the quantity of labor demanded and the money wage rate
the quantity of labor demanded and the real wage rate
real GDP and the quantity of labor demanded
the labor hours hired by all the firms in the economy and real GDP

Which of the following statements is correct?

The price of a good is equal to the real wage rate minus the money wage rate.
The money wage rate is equal to the real wage rate multiplied by the price of a good.
The real wage rate is equal to the money wage rate minus the price of a good.
The real wage rate is equal to the money wage rate multiplied by the price of a good.

The marginal product of labor is _______, when all other influences on production remain the same.

the additional real GDP produced by an additional hour of labor
the real GDP produced by labor
the change in real GDP divided by the change in the quantity of labor
the additional real GDP produced when the quantity of labor supplied increases

The number of labor hours that all the households in the economy plan to work is the ________________________.

quantity of labor supplied
long-run aggregate supply
supply of labor
long-run aggregate labor supply

When the quantity of labor demanded equals the quantity of labor supplied, _______________.

the real GDP produced equals potential GDP
the marginal product of labor is at its maximum possible value
the real wage rate is $25 an hour
the short-run aggregate supply curve is vertical

The long-run aggregate supply curve is the relationship between the quantity of real GDP supplied and the price level when ___________________.

real GDP equals potential GDP
the money wage rate, resource prices, and potential GDP remain constant
the money wage rate and potential GDP remain constant
real GDP is greater than or equal to potential GDP

The unemployment rate at full employment is __________________.

the natural rate of unemployment
continually decreasing as the economy grows
zero
between 0 and 1 percent

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