If the economy is producing at potential GDP
A) the short-run aggregate supply curve must be vertical.
B) inflation in the economy is at its natural rate.
C) the Phillips curve must be positively sloped.
D) unemployment is at its natural rate.
D
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GDP is a measure of the total output of an economy.
Answer the following statement true (T) or false (F)
The percentage change in the quantity demanded of film divided by the percentage change in the price of cameras indicates:
a. the price elasticity of demand for film. b. the price elasticity of demand for cameras. c. the price elasticity of supply for film. d. the price elasticity of supply for cameras. e. nothing, because the two goods fall into the broadly defined category of photographic equipment.
Those who believe that monopolies are both inevitable and undesirable would probably support price regulation
Indicate whether the statement is true or false
John Maynard Keynes believed that wages may be inflexible in the downward direction. Consequently, an economy
A) could get stuck in long-run equilibrium. B) could get stuck in a recessionary gap. C) could get stuck in an inflationary gap. D) would always produce more than Natural Real GDP. E) b and c