An inflationary gap is the amount by which
A) total planned production exceeds total planned real expenditures in the long run.
B) the short-run equilibrium level of nominal GDP is above the short-run level of real GDP.
C) the short-run equilibrium level of nominal GDP is below the short-run level of real GDP.
D) the short-run equilibrium level of real GDP is above the full-employment level of real GDP.
D
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The U.S. economy has grown constantly over the years.
Answer the following statement true (T) or false (F)
Which of the following is a difference between a monopolistically competitive market and a perfectly competitive market in the long run?
A) Firms in a monopolistically competitive market earn zero economic profits in the long run, while firms in a perfectly competitive market earn positive economic profits in the long run. B) Firms in a monopolistically competitive market earn zero economic profits in the long run, while firms in a perfectly competitive market incur losses in the long run. C) Firms in a monopolistically competitive market charge a price higher than marginal cost in the long run, while firms in a perfectly competitive market charge a price equal to marginal cost in the long run. D) Firms in a monopolistically competitive market charge a price lower than marginal cost in the long run, while firms in a perfectly competitive market charge a price equal to marginal cost in the long run.
The M2 aggregate
A) includes M1 plus short-term investment accounts. B) includes M1 plus large-denomination time deposits. C) equals currency plus checking account deposits at commercial banks. D) is the best definition of money purely as a medium of exchange.
Oligopolistic firms
A. are few in number. B. are interdependent. C. charge a higher price and produce a smaller output than perfect competitors. D. all of the choices are true of oligopolistic firms.