Using Figure 3 below the distance between what 2 lines illustrate a recessionary output gap?
A. PAE2 to PAE3
B. PAE1 to PAE2
C. Y1 to Y2
D. Y2 to Y3
C. Y1 to Y2
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The terms of trade refer to:
A) rules and regulations that govern trade between nations. B) product of the opportunity cost of producing the same good in two trading nations. C) exchange rate of goods for goods. D) amount of money that has to be given up to import an additional quantity of a good.
In the Thomas (1954) model,
(a) all nations near the Atlantic Ocean were considered one economic unit. (b) laborers, capital and other resources freely move to those users with the highest net returns. (c) the European economy moved inversely in relation to the U.S. economy and vice versa. (d) all of the above are true.
When workers loose their jobs and become officialy unemployed the number of people in the labor force remain
What will be an ideal response?
If the quantity of money demanded is less than the quantity of money supplied, then the interest rate will:
a) change in an uncertain direction b) rise c) fall d) remain constant