Other things the same, a decrease in aggregate demand decreases both inflation and unemployment
a. True
b. False
Indicate whether the statement is true or false
False
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If Real GDP is less than Natural Real GDP, then the (actual) unemployment rate is
A) less than the natural unemployment rate. B) equal to the natural unemployment rate. C) greater than the natural unemployment rate. D) less than or greater than the natural unemployment rate, but we cannot determine which one. E) b and d
Which of the following best defines a negative network externality?
a. an increase in a consumer’s quantity demanded for a good because a greater number of other consumers are purchasing the good b. an increase in a consumer’s demand for a good because fewer consumers are purchasing the same good c. the costs involved in changing from one product to another brand or in changing suppliers d. the situation in which each firm is said to be doing as well as it can give the actions of its competitors
If we add together all the gains from specialization and trade and then subtract all the losses, the net result would be
A. Positive: a net gain for the world and each country. B. Negative: a net loss for the world and each country. C. Impossible to tell: the net result could be zero, positive, or negative. D. Zero: the gains and losses would cancel out.
Refer to the above figure. The marginal benefit of pollution abatement is curve
A. (1). B. (2). C. (3). D. (4).