Using Figure 3 above the distance between what 2 lines illustrate a recessionary output gap?
A. PAE2 to PAE3
B. Y2 to Y3
C. Y1 to Y2
D. PAE1 to PAE2
Answer: C
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Aristotle believed voluntary trade should be
A) an exchange of unequal values. B) an exchange of equal values. C) an exchange of equal material possessions. D) an exchange of unequal material possessions.
After his father lost his job, Jack was forced to drop out of school. In this scenario unemployment resulted in _____
a. a loss of lifetime earnings b. a loss of human capital c. deterioration of health d. a loss of social cohesion
Shoe-leather costs refer to:
A. the money, time, and opportunity used to change prices to keep pace with inflation. B. being penalized via taxes for making more money in dollars, even though real purchasing power hasn't changed at all. C. the time, money, and effort one has to spend managing cash in the face of inflation. D. labor costs associated with inflation.
If the exchange rate for the euro changes from $1 = 0.81 euro to $1 = 1.14 euro, then the:
A. Euro has appreciated B. Dollar has appreciated C. Dollar has depreciated D. Value of euros has increased