Which of the following conditions describes an inflationary gap?
A. The short-run equilibrium level of real GDP is below the long-run level of real GDP.
B. The short-run equilibrium level of real GDP is above the long-run level of real GDP.
C. The actual interest rate is below the equilibrium interest rate.
D. The actual interest rate is above the equilibrium interest rate.
Answer: B
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In 2008, real GDP in the United States was $13,312 billion. In 2009, real GDP in the United States was $13,112 billion. What was the U.S. economic growth rate from 2008 to 2009?
A) -1.5 percent B) 1.5 percent C) 0.98 percent D) 0.12 percent E) $200 million
Explain the effect of trade deficits on economic growth
What will be an ideal response?
The above figure shows the market for labor. The employer is a monopsony. If a minimum wage of $10 is imposed, the equilibrium level of employment is
A) 200 hours per day. B) 400 hours per day. C) 600 hours per day. D) 800 hours per day.
To the investor, stocks are riskier than bonds because
A. interest rates fluctuate more than stock prices. B. dividends and capital gains depend on profits. C. speculators manipulate stocks but not bonds. D. dividends are taxed twice.