Which of the following would be associated with an inflationary gap?
a. interest rates too low
b. business expectations pessimistic
c. inventory levels too low
d. stock market crash
e. All of the above.
c
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Economic choice and competitive behavior are the result of
a. basic human greed. b. poverty. c. private ownership of resources. d. scarcity.
Suppose this year's inflation rate is 4 percent, which is greater than the 2 percent everyone expected. Which of the following is true?
a. real GDP will increase b. the unemployment rate will probably rise c. potential output will remain the same d. the short-run aggregate supply curve will shift to the right e. there will be a leftward movement along a given short-run aggregate supply curve
The Dow Jones Industrial Average:
A. gives greater weight to shares with higher prices. B. gives equal weight to a change in the price of the stock of any company in the index. C. is a value-weighted index. D. reflects that a 10% increase in a share of stock selling for $30 will have the same effect on the index as a 10% increase in the price of a stock selling for $60.
A firm is producing output less than the output associated with the minimum point on the firm's short run average variable cost curve. At this level of output the firm uses its fixed capital input ________ and its variable labor input ________.
A. inefficiently; efficiently B. efficiently; inefficiently C. inefficiently; inefficiently D. efficiently; efficiently