A recessionary gap is the amount that autonomous aggregate expenditures must rise to cause the equilibrium level of real GDP to shift to the full-employment level of real GDP
a. True
b. False
Indicate whether the statement is true or false
True
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"If the distribution of income was equal, the Lorenz curve would be a straight, 45° line." Is the previous statement or in?
What will be an ideal response?
The deficit is
A) the amount by which government purchases, transfers, and net interest exceed tax revenues. B) the amount by which government purchases and transfers exceed tax revenues. C) the primary deficit minus net interest payments. D) total tax revenues minus net interest minus government expenditures.
If the wage increases, the isocost line will
A) stay the same. B) shift outward in parallel fashion. C) rotate inward around the point where only capital is employed in production. D) shift inward in parallel fashion.
What is the price and quantity of coffee for the second-highest point on the market supply curve?
a. $3 per pound; 3,000 pounds of coffee per year
b. $3 per pound; 5,000 pounds of coffee per year
c. $4 per pound; 7,000 pounds of coffee per year
d. $5 per pound; 7,000 pounds of coffee per year