Keynesian macroeconomic theory may be summarized by the idea that demand creates _____.
Fill in the blank(s) with the appropriate word(s).
its own supply
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Given the annual rate of economic growth, the "rule of 72" allows one to
A. determine the growth rate of per capita GDP. B. calculate the size of the GDP gap. C. determine the accompanying rate of inflation. D. calculate the number of years required for real GDP to double.
Okun's law states that for every 1-percentage-point increase in the cyclical unemployment rate, real GDP growth
A) must increase by 1 percentage point for the economy to keep from experiencing a recession. B) decreases by about 2 percentage points. C) declines for 1 year. D) increases by 1 percentage point.
Ed Sike was able to increase his net revenue by charging different prices to different customers because
A) his cost of serving different customers varied. B) his marginal costs declined as his sales increased. C) his marginal costs were rising. D) he could distinguish faculty from students at low cost.
An In the News article titled "U.S. Winemakers Hurt by Imported Wine" discusses foreign wine sold in the U.S. market. California grape growers' main complaint was that
A. California wineries were not buying domestic grapes but were selling wine and calling it "100% pure American." B. The growing strength of the dollar makes it hard to compete C. The weather had hurt their business. D. The state had removed all subsidies due to the financial crisis that had left the budget in disarray.