The neoclassical perspective on macroeconomics emphasizes that in the long run, the economy seems to rebound back to its _____________ and its ____________________.
A. long term growth; cyclical unemployment
B. potential GDP; natural rate of unemployment
C. natural level of output; cyclical unemployment rate
D. real GDP; natural rate of unemployment
Answer:B
The neoclassical perspective on macroeconomics emphasizes that in the long run, the economy seems to rebound back to its _____________ and its ____________________.
A. long term growth; cyclical unemployment B. potential GDP; natural rate of unemployment C. natural level of output; cyclical unemployment rate D. real GDP; natural rate of unemployment
Explanation: Type: Multiple Choice