If policymakers do nothing in response to a recessionary gap, what will happen?
A. A rapid movement toward lower unemployment and higher inflation
B. A rapid movement toward lower unemployment and lower inflation
C. A slow movement toward lower unemployment and higher inflation
D. A slow movement toward lower unemployment and lower inflation
Answer: D
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Describe the channels through which an open market purchase of bonds by the Fed affects output in a closed economy
What will be an ideal response?
Which of the following statements is true?
A) Monopoly is characterized by no entry barriers. B) Perfect competition is characterized by high entry barriers. C) Firms in a market with entry barriers are likely to have more market power than firms in a market with no entry barriers. D) Firms in a market with no entry barriers are likely to have more market power than firms in a market with entry barriers.
What is the relationship between total variable cost and marginal cost? Explain
What will be an ideal response?
Using the above table, a unit tax of $2 is imposed on the product. How much of the tax is paid by the producer?
A) $2 B) $1 C) $3 D) unable to determine