Graphically the intersection of the aggregate demand curve, the short-run and long-run aggregate supply curves determines:
A. the expansionary gap.
B. long-run equilibrium.
C. the recessionary gap
D. short-run equilibrium.
Answer: B
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A price ceiling in the market for fuel oil that is below the equilibrium price will
A) lead to the quantity supplied of fuel oil exceeding the quantity demanded. B) lead to the quantity demanded of fuel oil exceeding the quantity supplied. C) decrease the demand for fuel oil. D) increase the supply of fuel oil. E) have no effect in the market for fuel oil.
Rational ignorance
A) refers to attempts by special interests to use government action to make themselves better off at the expense of others. B) explains the Arrow impossibility theorem. C) helps to explain why rent seeking by special interest groups occurs. D) explains why consumers ignore sunk costs when they vote.
Waiters in countries where it's customary to tip waiters will tend to have lower wages than will waiters in countries where tipping is not customary.
Answer the following statement true (T) or false (F)
IMF conditionality refers to the
A) technical assistance the IMF gives. B) minimum-sized loan the IMF will make. C) maximum-sized loan the IMF will make. D) changes a country must make in order to receive IMF financial assistance.