According to the rule of 72, a 12% annual increase in real GDP would lead to a doubling of real GDP in 8 years.
a. true
b. false
Ans: b. false
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A recession is commonly defined as occurring when
A) real GDP decreases for a period of 12 or more months. B) real GDP decreases for a period of 6 or more months. C) the unemployment rate rises above 7.5 percent for 6 or more months. D) the unemployment rate rises above 5.0 percent for 12 or more months.
Antitrust cases that are brought to the courts by the Justice Department typically rely on perfect competition as a benchmark for lawyers to determine whether a firm is competitive or monopolistic
Why is this a troublesome criterion to use in prosecuting such cases?
If an Engel curve has a negative slope,
A) the good is inferior. B) the good is normal. C) the good has no substitutes. D) the good has no complements.
When a consumer's willingness to buy a good or service is influenced by the number of people who have purchased that good or service, this is called
A) a switching cost. B) an opportunity cost. C) a network effect. D) an advertising gimmick.