The gap between potential GDP and real GDP had been as large as 7 percent during the worst of the 2007-2009 recession. By 2015, the gap
A) was positive, with real GDP exceeding potential GDP.
B) had been eliminated.
C) was still nearly 3 percent.
D) remained at 7 percent.
C
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If the balance on the current account is $346 billion and the balance on the financial account is -$204 billion, what is the balance on the capital account, assuming no statistical discrepancy?
A) $550 billion B) $142 billion C) $0 D) -$142 billion
If the asset market is in equilibrium, the growth rate of the nominal money supply minus the growth rate of real money demand equals
A) the real interest rate. B) the inflation rate. C) the price level. D) the growth rate of real output.
Brian is the sole proprietor owner of Long Voyage Software, which writes programs to generate maps for wilderness trips. He started the business with an initial investment of $80,000 . A faulty map caused one customer to get hopelessly lost. After her rescue and recuperation, she sued Long Voyage Software for $5,000,000 . Which of the following is true? a. The customer can be awarded only
$80,000—what the firm has available to pay. b. The customer can be awarded $5,000,000 . but can get only $80,000. c. The customer can be awarded $5,000,000 . but Brian personally won't have to pay more than $80,000. d. If $5,000,000 is awarded, Brian will have to pay none of it. e. If $5,000,000 is awarded, Brian is personally responsible for paying all of it.
The following graph shows the production possibilities curve for the economy with only two members, Silvia and Art. Silvia can produce either 50 pounds of beef or 2 computers per week, and Art can produce 100 pounds of beef or 1 computer per week. Both of them work 40 weeks per year.
How much of each good is produced if each worker fully specializes according to comparative advantage?
A. 6,000 pounds of beef and 160 computers B. 6,000 pounds of beef and 120 computers C. 4,000 pounds of beef and 80 computers D. 8,000 pounds of beef and 120 computers