Refer to the information provided in Figure 2.1 below for the economy of Macroland to answer the question(s) that follow.
Figure 2.1Refer to Figure 2.1. Macroland is currently operating at Point A. The best explanation for this is that
A. the economy has very few resources.
B. the economy's resources are being used inefficiently.
C. the economy operates as an efficient market.
D. the economy has very poor technology.
Answer: B
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Is it possible for nominal GDP to increase while real GDP does not change?
What will be an ideal response?
Autonomous aggregate expenditures decreases by $200 million, the marginal propensity to consume is 0.50, marginal propensity to invest is 0.25, and the marginal propensity to import is 0.10. Calculate the change in income
What will be an ideal response?
If real GDP increased and nominal GDP decreased during the same year, we could conclude that
a. the general price level increased during the year. b. the unemployment rate increased during the year. c. the general price level fell during the year. d. net exports were negative.
The U.S. Constitution
a. prohibits tariffs on trade between Arkansas and New York but allows tariffs on trade between Hawaii and Alaska. b. prohibits tariffs on all trade. c. allows tariffs on trade with other countries, but not on trade between the states. d. allows tariffs only on goods purchased from the communist nations.