If the economy experiences an unplanned inventory accumulation at the full employment level of GDP, then the economy is in a(n)
A. inflationary gap.
B. hyperinflation.
C. recessionary gap.
D. full employment gap.
Answer: C
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Improvements in productivity shift the aggregate supply curve outward.
Answer the following statement true (T) or false (F)
Justin never keeps track of the sales and discounts offered in the stores at various times of the year, while his sister does. This implies that Justin has a higher price elasticity of demand than his sister
Indicate whether the statement is true or false
Injections to the circular flow model include saving, taxes, exports, and investment.
Answer the following statement true (T) or false (F)
Who was one of the first proponents of employing market economies instead of command economies?
A. Robert Heilbroner. B. Karl Marx. C. Jeffrey Sachs. D. Adam Smith.