When the output gap is positive, it represents ________ gap, and when it is negative, it represents ________ ga
A) a recessionary; an inflationary
B) an inflationary; a recessionary
C) an inflationary; an employment
D) an employment; an unemployment
E) None of the above answers is correct.
B
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The conclusion that the level of output is efficient at the market equilibrium rests on all of the following assumptions EXCEPT that __________.
A. buyers and sellers are well-informed B. there are no external costs or benefits C. the government regulates price and output D. the market is perfectly competitive
A negative externality imposes a burden or cost on others
Indicate whether the statement is true or false
Kate is a professional opera singer who gives voice lessons. The vocal-music industry is competitive. Kate hires a business consultant to analyze her financial records. The consultant recommends that Kate give fewer voice lessons. The consultant must have concluded that Kate's
a. total revenues exceed her total accounting costs. b. marginal revenue exceeds her total cost. c. marginal revenue exceeds her marginal cost. d. marginal cost exceeds her marginal revenue.
When we are in a recession, according to the sophisticated quantity theorists, an increase in M will lead to
A. a decrease in V. B. an increase in V. C. an increase in PQ, with most or all of that increase in P. D. an increase in PQ, with most or all of that increase in Q.