In a diagram of aggregate demand and supply curves, the GDP gap is measured as the
A. Vertical distance between the equilibrium output and the full-employment output.
B. Horizontal distance between the equilibrium output and the full-employment output.
C. Horizontal distance between the aggregate demand necessary to achieve full employment and the aggregate demand curve at equilibrium output.
D. Vertical distance between the equilibrium price and the price at which the aggregate demand would intersect aggregate supply at full employment.
Answer: B
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An increase in price causes:
A. a decrease in total revenue due to the price effect. B. an increase in total revenue due to the price effect. C. an increase in total revenue due to the quantity effect. D. an increase in quantity demanded.
The average tariff rate of the United States is about ________ of the value of their imports.
A. 1.6 percent B. 7.4 percent C. 59 percent D. 100 percent
Refer to the diagram. Which tax system has the most built-in stability?
A. T 4 .
B. T 3 .
C. T 2 .
D. T 1 .
In 1941 Henry Luce coined the term ______________________ to describe the magnitude of America's economic and military prowess.
Fill in the blank(s) with the appropriate word(s).