A recessionary gap exists when the equilibrium level of GDP exceeds potential GDP
a. True
b. False
Indicate whether the statement is true or false
False
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Workers who suffer disability are likely to suffer higher ________
A) cyclical unemployment B) tertiary unemployment C) structural unemployment D) natural unemployment
A major U.S. motive for negotiating a free-trade agreement with Mexico was to
a. help foster the study of the Spanish language as a means to trading with all Spanish-speaking countries b. increase immigration into the United States c. gain increased access to Mexican consumers d. keep Mexico from going Communist e. achieve, ultimately, political union with Mexico
Financial intermediaries
A. Always allocate funds to the least productive investments. B. Transfer purchasing power from spenders to savers. C. Spread the risk of investment failure over many individuals. D. Increase search and information costs for savers and investors.
A public good
A. Is overproduced by the market. B. Is any good produced by the government. C. Causes government failure. D. Is subject to the free-rider dilemma.