The production possibility frontier shows the boundary between ____________.

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

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

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

Factors that influence labour productivity include _______________________.

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

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

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

Which of the following statements is correct?

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

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

the additional real GDP produced by an additional hour of labour
the additional real GDP produced when the quantity of labour supplied increases
real GDP divided by the quantity of labour
the real GDP produced by labour

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

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

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

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

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

The unemployment rate at full employment is __________________.

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