If short-run equilibrium output equals 20,000 and full employment equals 25,000, then this economy has a(n)
A. employment gap.
B. inflationary gap.
C. demand gap.
D. recessionary gap.
Answer: D
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Recently, new discount window lending procedures set a penalty rate that is normally __________ short-term market interest rates
A) just below B) above C) approximately equal to D) None of the above.
The demand curve facing a monopolist will be more elastic
A) the greater is the number of substitute products. B) as the consumers' need for the good increases. C) the greater is the amount of fixed costs to cover. D) as the number of consumers increases.
Exchange rates vis-a-vis the U.S. dollar have changed little over time
a. True b. False Indicate whether the statement is true or false
Why is the interest rate such an important price in the economy?
What will be an ideal response?