An economy that is in equilibrium and operating below its full-employment capacity must be experiencing a(n)
a. inflationary period
b. recessionary gap
c. a surplus budget outcome
d. market correction
e. inflationary gap
B
You might also like to view...
The short-run supply curve for a perfectly competitive firm is its
A) marginal cost curve above the horizontal axis. B) marginal cost curve above its shutdown point. C) average cost curve above the horizontal axis. D) average cost curve above its shutdown point.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. For this economy to move from Point B to Point C so that an additional 20 OLED televisions could be produced, production of LCD televisions would have to be reduced by
A. more than 30. B. exactly 60. C. fewer than 30. D. exactly 30.
Hypothetical economy: C=$600 billion, I=$300 billion, G=$150 bill Assume for the long run: 1. For every 1% increase (decrease) in interest rate, planned investment decreases (increases) by $5 billion. 2. For every $10 billion increase (decrease) in government spending, interest rate increases (decreases) by 1%. 3. The MPC = 0.8 Assuming the economy is in equilibrium, how much is equilibrium output?
A) $750 billion. B) $900 billion C) $1,050 billion D) $1,350 bill
Consider the hypothetical supply and demand of Kidneys.
If the government allows the buying and selling of kidneys, what will be the resulting price and quantity of kidneys?
A. (1200, 2000) B. No kidneys would be exchanged. C. (0, 900) D. (1500, 900)