If the economy is currently operating below its institutional production possibilities frontier (institutional PPF), it is
A) in long-run equilibrium.
B) in a recessionary gap.
C) in an inflationary gap.
D) definitely not self-regulating.
E) b and d
B
You might also like to view...
In the LM curve, the __________ the interest-sensitivity of liquidity preference, the __________ the necessary increase in the rate of interest to restore equilibrium
A) greater; smaller B) greater; greater C) smaller; smaller D) None of the above.
The procedure of determining the present value of payments to be received in the future is known as
a. compounding b. amortizing c. perpetuating d. nominalizing e. discounting
A U.S. purchase of oil from overseas paid for with foreign currency it already owned
a. increases U.S. net exports, and increases U.S. net capital outflow. b. increases U.S. net exports, and decreases U.S. net capital outflow. c. decreases U.S. net exports, and increases U.S. net capital outflow. d. decreases U.S. net exports, and decreases U.S. net capital outflow.
Refer to the information provided in Table 2.2 below to answer the following question(s).Table 2.2?MollyPeteAvatar Design68Tattoo Design32Refer to Table 2.2. To maximize total production,
A. Molly and Pete should both split their time between designing avatars and tattoos. B. Molly should design avatars and tattoos, but Pete should only design avatars. C. Pete should specialize in avatar design and Molly should specialize in tattoo design. D. Molly should specialize in avatar design and Pete should specialize in tattoo design.