A recessionary gap results when
A) aggregate demand is below the level consistent with full employment.
B) aggregate demand is above the level consistent with full employment.
C) aggregate supply and aggregate demand are not in short-run equilibrium.
D) aggregate supply decreases.
A
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The idea of continuous economic growth as a "perpetual motion machine" best reflects the prediction of which growth theory?
A) no growth theory B) the classical growth theory C) the traditional growth theory D) the Keynesian growth theory E) the new growth theory
As contrasted to the mainstream view, Keynesian economists believe that ________ than mainstream economists believe
A) the multiplier effect is larger B) the burden of government debt on future generations is larger C) fiscal stimulus is weaker D) potential GDP is smaller E) the real GDP growth rate is higher
Foreign outsourcing of service is commonly seen in economies that possess the skills and equipment required to produce those services for themselves
Indicate whether the statement is true or false
"The value of the next best alternative" defines
A. the Law of Increasing Costs. B. the economic problem. C. allocative efficiency. D. opportunity cost.