Economic growth is an increase in the total output of an economy.
Answer the following statement true (T) or false (F)
True
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The government uses fiscal and monetary policy to mitigate the effects of economic fluctuations
a. True b. False Indicate whether the statement is true or false
Consider the hypothetical supply and demand of Kidneys.
Initially, kidneys are exchanged by donations only (price=0). If the government decides to legalize kidney sales and the market reaches equilibrium, then:
A. consumer surplus remains the same. B. total surplus increases. C. a shortage of kidneys will arise. D. producer surplus remains the same.
Using the output at which the aggregate expenditure curve intersects the 45-degree line, we can identify
A. A consumption shortfall at the intersection point. B. Full employment to the left of the intersection point if there is a recessionary gap. C. Equilibrium (macro) at the intersection point. D. Dissaving to the right of the intersection point.
Price controls
A) do not include black markets. B) are another name for the price system. C) do not include rent controls. D) interfere with the rationing function of prices.