Using Figure 9.9, and assuming the full-employment output level is $50 billion,
A. There is a recessionary gap of $50 billion income.
B. The economy is at macro equilibrium.
C. There is an inflationary gap of $25 billion income.
D. There is an inflationary gap of $50 billion income.
Answer: C
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If the reserve ratio is 5 percent, then $600 of additional reserves can create up to
a. $30 of new money. b. $3,000 of new money. c. $12,000 of new money. d. None of the above is correct.
Economists who asset that the AS curve is vertical believe that changes in Real GDP originate only on the _____________of the economy; so government policy that is intended to impact the ____________________ of the economy will change only ______________, not ________________
A) demand side; supply side; Real GDP; prices B) demand side; supply side; prices; Real GDP C) supply side; demand side; Real GDP; prices D) supply side; demand side; prices; Real GDP
Comparing how many dollars it takes to attend college each year to annual earnings on a job represents the use of money as a:
A. medium of exchange. B. unit of account. C. store of value. D. store of coincidence.
Exhibit 9-2 Demand and cost information for a monopoly Q P TC 0 40 10 1 30 15 2 20 25 3 10 40 4 0 60 The marginal revenue of the second unit of output in Exhibit 9-2 is:
A. 10. B. 20. C. 30. D. 40.