If the GDP gap is positive, then:
A. The inflation rate is falling
B. The unemployment rate is rising
C. Potential GDP is greater than actual GDP
D. Actual GDP is greater than potential GDP
D. Actual GDP is greater than potential GDP
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When a firm experiences increasing marginal returns, the marginal cost of output also increases. Similarly, when the firm experiences decreasing marginal returns, the marginal cost of output also decreases
Indicate whether the statement is true or false
When an economy is operating efficiently, the production of more of one good will result in the production of less of some other good because
What will be an ideal response?
Holding all else constant, an increase in the real interest rate on U.S. assets will ________ the demand for dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.
A. increase; decrease B. decrease; decrease C. increase; increase D. decrease; increase
Which of the following is likely to shift the demand curve for carpenters rightward, assuming all else equal?
A) A fall in the wage rate of carpenters B) A fall in the price of wood C) A rise in the wage rate of carpenters D) A rise in the price of wood