When the economy is experiencing a negative output gap:
A. the economy may be in a recession.
B. there is little inflationary pressure due to low demand.
C. some people and some capital are unemployed.
D. All of these statements are true.
Answer: D
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What is the difference between positive economic analysis and normative economic analysis? Give one example each of a positive and normative economic issue or question or statement
What will be an ideal response?
If hot dogs are an inferior good, an increase in income will result in
A, an increase in the quantity demanded for hot dogs B. an increase in the demand for hot dogs C. a decrease in the quantity demanded for hot dogs D. a decrease in the demand for hot dogs E. no change in the quantity demanded for hot dogs
Consumer goods:
A.) Account for over two-thirds of total U.S. output. B.) Include nondurable goods but not durable goods. C.) Account for a smaller portion of GDP than government services. D.) Include durable and nondurable goods but not services.
Products produced in oligopoly markets are always differentiated.
Answer the following statement true (T) or false (F)