Well-functioning financial markets
A) cause inflation.
B) eliminate the need for indirect finance.
C) cause financial crises.
D) allow the economy to operate more efficiently.
D
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Refer to Figure 24-4. Given the economy is at point A in year 1, what is the difference between the actual growth rate in GDP in year 2 and the potential growth rate in GDP in year 2?
A) 0.3% B) 1.1% C) 2.7% D) 3.7%
In the 1970s and 1980s policies that required retirement of people over age 65 were repealed. Which variable would this directly affect?
a. The employment-population ratio b. Productivity c. Average hours d. Population e. Technology
In the short run, if a perfectly competitive firm is producing at a price below average total cost, its economic profit is:
A. positive. B. zero. C. negative. D. normal.
If the economy is on the steep portion of the AS curve
A. government spending, but not consumption, crowds out planned investment. B. consumption, but not government spending, crowds out planned investment. C. there is little crowding out of planned investment. D. there is almost complete crowding out of planned investment.