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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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
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?