A growth recession occurs when
a) there are two successive quarters of negative GDP growth
b) economic growth is so rapid that it creates inflation
c) real GDP is growing but nominal GDP is not
d) potential GDP declines
e) GDP grows at a slower rate than its long run trend
e) GDP grows at a slower rate than its long run trend
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Predatory pricing, as defined in the text, is
A) common and profitable but illegal. B) common, profitable, and legal. C) common but both unprofitable and illegal. D) common and legal but unprofitable. E) rarely observed though often alleged.
Some economists believe that in the long run, the unemployment rate is independent of the inflation rate and so the Phillips curve becomes a vertical line
a. True b. False Indicate whether the statement is true or false
In a market that lacks sufficient competition,
a. output will generally be less than the output that is ideal from the standpoint of economic efficiency. b. output will generally be greater than the output that is ideal from the standpoint of economic efficiency. c. price will generally be less than the price that would result if the market was competitive. d. profit rates will generally be so low that government subsidies will be necessary to ensure that the firms remain in business.
An elastic demand indicates that
A. relatively large changes in price are required to obtain a relatively small change in quantity demanded. B. relatively small changes in price lead to relatively large changes in quantity demanded. C. relatively large changes in quantity demanded lead to relatively large changes in price. D. quantity demanded does not vary with changes in the price.