If potential GDP for the fourth quarter of 2012 = $58.5 billion, and real GDP for the fourth quarter of 2012 = $53.7 billion, then the output gap was
A) -8.9%.
B) -8.2%.
C) 8.2%.
D) 8.9%.
B
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Collusive arrangements tend to collapse when
a. there is a small number of sellers b. the benefits of cheating are great and the costs are low c. inflation is high d. interest rates are low e. there is a powerful price leader
Any improvement in overall production technology that permits more output to be produced with the same amount of inputs causes:
a. A rightward shift of the supply curve so that more is offered at each price b. A movement up the supply curve, resulting in both a higher equilibrium quantity and price c. A leftward shift of the supply curve so that less is offered for sale at each price d. No movement of the supply curve but a fall in price and a decrease in quantity supplied
If effective, a government-set price ceiling will lower equilibrium price and quantity in a market.
Answer the following statement true (T) or false (F)
A nation's production possibilities curve might shift to the left (inward) as a result of:
A. technological advance. B. increases in the size of the labor force. C. the depletion of its soil fertility due to overplanting and overgrazing. D. investing in more capital goods.