In Figure 9.6, if full employment occurs at QA, then aggregate demand is
A. Too small, causing an inflationary gap.
B. Just right, causing no cyclical unemployment.
C. Too great, causing a recessionary gap.
D. Too great, causing an inflationary gap.
Answer: D
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The figure above shows the costs and demand curves for the Bigshow Cable Company. Bigshow Cable Company incurs an economic loss if the regulator set its price at
A) $8. B) $6. C) $4. D) None of the above prices force Bigshow to incur an economic loss.
What was the approximate peak amount of borrowing from the Fed during the Financial Crisis of 2007-2009?
A) $2 billion B) $100 billion C) $270 billion D) $1 trillion
Figure 9-5 shows cost and demand curves facing a typical firm in a constant-cost, perfectly competitive industry. Refer to Figure 9-5. If the firm’s fixed cost increases by $1,000 due to a new environmental 68. regulation, what happens in the diagram above?
a. Only the average total cost curve shifts upward; the marginal cost and average variable cost curves are not affected. b. All the cost curves shift upward. C. Only the average variable cost and average total cost curves shift upward; marginal cost is not affected. d. None of the curves shift; only the fixed cost curve, which is not shown here, is affected.
An effective craft union acts as a monopoly
A. demander of labor. B. seller of labor. C. demander of capital. D. seller of capital.