Which of the following options could be used to eliminate a recessionary gap?
A. Increase government spending.
B. Decrease government spending.
C. Decrease investment.
D. Increase taxes.
Answer: A
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Under an upward sloping supply curve for land, the economic rents to land ________ as the demand for land shifts rightward
A) decrease B) increase C) remain the same D) We do not have enough information to answer this question.
Refer to the above figure. If the economy is currently operating at point C, then there is
A) a stable long-run equilibrium situation. B) a recessionary gap. C) an inflationary gap. D) unemployment.
An expectation of increased prices of a good in the future is likely to:
A. increase current demand. B. decrease current demand. C. have no impact on current demand. D. only affect seller's decisions.
If there were four firms in an industry each with a 25% market share, what would the Herfindahl-Hirschman Index equal?
a. 2500 b. 1250 c. 1,000 d. 625