Which of the following is a difference between an active approach to close a recessionary gap and a passive approach to close a recessionary gap?
a. The level of real GDP would be higher in the long run with the active approach, while it will be lower with the passive approach.
b. The level of real GDP would be lower in the long run with the active approach, while it will be higher with the passive approach.
c. The price level would be higher and the level of real GDP would be lower in the long run with the active approach, whereas the price level would be lower and real GDP level would be higher with the passive approach.
d. Only the price level would be lower in the long run with the active approach, whereas it would be higher with the passive approach.
e. Only the price level would be higher in the long run with the active approach, whereas it would be lower with the passive approach.
e
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Social cooperation by means of voluntary contracts and exchanges
A) cannot occur in a socialist economic system. B) cannot occur where government sets rules that restrict behavior. C) is easier to achieve when the laws of the society are clear and unchanging. D) is harder to achieve when the members of the society own very little material property in common.
Pressure to redistribute the economic pie is strong when the economy is booming
Indicate whether the statement is true or false
The invention of the cotton gin ushered in the Industrial Revolution and began a long period of technological innovation. What did this technological change do the short-run supply curve?
A) It shifted the short-run aggregate supply curve to the left. B) It shifted the short-run aggregate supply curve to the right. C) It moved the economy up along a stationary short-run aggregate supply curve. D) It moved the economy down along a stationary short-run aggregate supply curve.
For the monopolistically competitive firm
A) P = MR > AR. B) P > MR = AR. C) Price (P) = Marginal Revenue (MR) = Average Revenue (AR). D) P = AR > MR.