Which three macroeconomic variables together best describe the health of the economy?
A. Output, GDP, and inflation
B. Output, inflation, and prices
C. GDP, unemployment, and employment
D. Output, prices, and employment
D. Output, prices, and employment
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Over the last 30 years, the income gap between the rich and the poor has declined
a. True b. False Indicate whether the statement is true or false
Louise Bakery sells cupcakes that have an equilibrium price of $5.00 per cupcake and an equilibrium output of 300 cupcakes. Which of the following is likely to be true when the government imposes a tax of $0.75 per cupcake? a. Producer and consumer surplus will increase. b. Producer and consumer surplus will decline. c. Equilibrium price will decrease
d. Equilibrium output will increase.
The market demand curve is calculated by:
a) Summing the quantities demanded from individual demand curves. b) Averaging the price demanded from individual demand curves. c) Averaging the quantities demanded from individual demand curves. d) Summing the price from individual demand curves.
If the government engages in contractionary fiscal policy a likely reason would be:
A. the economy is operating at a level that is just below full employment. B. they think the economy is not growing fast enough and they want to speed it up. C. they think the economy is growing too quickly and they want to slow it down. D. people are not spending enough money and they want to boost spending.