If the economy is in equilibrium with real GDP less than potential GDP, there is ________ gap and a fiscal policy that ________ is appropriate
A) an inflationary; increases aggregate demand
B) an inflationary; decreases aggregate demand
C) a recessionary; increases aggregate demand
D) a recessionary; decreases aggregate demand
E) a recessionary; increases potential GDP
C
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A market structure in which identical goods are produced by several different firms and sold at the market determined price is referred to as:
A) an oligopoly. B) a monopoly. C) perfect competition. D) monopolistic competition.
Suppose a tornado ravages a city, causing 5 million dollars in expenditures on new construction and healthcare for the victims. Those new expenditures
A) would be added to the gross domestic product account. B) would be subtracted from the gross domestic product account. C) would be added to the gross domestic product account and subtracted from the national income account. D) would impact GDP in none of the above ways.
Acme Brands invested $5 million in 2010 on new equipment, spent $750 thousand to increase its inventory of intermediate components, and added $25 thousand to its inventory of finished goods
At year's end, the components inventory is found to be $200 thousand above its beginning-of-the- year level, and finished goods inventory is up $30 thousand over its starting level. Calculate planned investment, unplanned investment, and actual (total) investment.
Economic development encompasses which of the following measures?
a. Distribution of income. b. Legal system. c. Transportation structures. d. All of these.