If potential output for an economy equals $8 billion, and actual output equals $7 billion, then this economy has a(n):
A. expansionary gap.
B. budget deficit.
C. recessionary gap.
D. trade deficit.
Answer: C
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From the social perspective, a major criticism of oligopolies is that
A) successful collusion leads to a monopoly-like outcome. B) price wars usually break out. C) advertising hardly ever occurs. D) cartels are unstable.
An increase in capital outflows from the United States will
A) decrease the balance on the capital account. B) decrease the balance on the financial account. C) increase the balance on the financial account. D) increase the balance on the current account.
During fiscal year 2012, the most recent mentioned in the text, the federal government spent approximately
a. $1.7 billion b. $1.9 trillion c. $3.7 trillion d. $14.0 trillion
An exchange rate system in which governments try to keep currency values from fluctuating against one another is a fixed exchange rate system.
Answer the following statement true (T) or false (F)