In the above figure, the short-run aggregate supply curve is SAS and the aggregate demand curve is AD. A recessionary gap exists
A) if the long-run aggregate supply curve is LAS1.
B) if the long-run aggregate supply curve is LAS2.
C) if the long-run aggregate supply curve is LAS3.
D) All of the above answers are correct.
C
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There is a shortage in a market for a product when
A. demand is less than supply. B. the current price is lower than the equilibrium price. C. supply is less than demand. D. quantity demanded is lower than quantity supplied.
Potential GDP in the United States
A) declines over time. B) changes over a given business cycle. C) does not change over time. D) grows as the economy grows.
Exhibit 36-1 Bond FaceValueof Bond Price ofthe Bond Annual CouponPayment A $1,000 $850 $25 B $1,000 $950 $41 C $1,000 $1,100 $52 D $1,000 $1,100 $32 E $1,000 $1,000 $50 Refer to Exhibit 36-1. The yield on bond B is approximately
A. 4.1 percent. B. 4.3 percent. C. 0.04 percent. D. 17 percent.
Which of the following statements is consistent with the law of supply?
a. An increase in the quantity supplied of buns will result in a decrease in the price of buns. b. An increase in the quantity supplied of buns will result in an increase in the price of buns. c. An increase in the price of buns will result in a decrease in the quantity supplied of buns. d. An increase in the price of buns will result in an increase in the quantity supplied of buns.