The more the short-run output exceeds the economy's potential, the ________ the expansionary gap and the ________ the upward pressure on the price level
a. larger; greater
b. smaller; lesser
c. larger; lesser
d. smaller; greater
a
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Assume that the supply curve for a commodity shifts to the right and the demand curve shifts to the left, both by the same degree. Then, in comparison to the initial equilibrium, the new equilibrium will be characterized by:
A) a lower price and quantity. B) a higher price and quantity. C) a lower price and the same quantity. D) a higher price and the same quantity.
Since the Great Depression, business fluctuations have become more severe and longer in duration
a. True b. False Indicate whether the statement is true or false
Because information is costly to acquire,
a. people will rationally choose not to become fully informed when making decisions. b. people will generally choose to become as fully informed as possible when making decisions. c. people will generally choose to acquire no information that would be relevant to their decisions. d. none of the above are true.
Which of the following is a real quantity?
A. The current price of a barrel of oil B. The current wages paid to factory workers C. The number of tons of steel produced in 2005 D. The cost of a new car