Which of the following statements accurately describes the situation shown?
a. The short-run equilibrium differs from the long-run equilibrium at full employment.
b. The economy is in a recession.
c. The actual real GDP is the same as the potential real GDP at full employment.
d. The economy is experiencing stagflation.
c. The actual real GDP is the same as the potential real GDP at full employment.
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
Using the data in the table above, when the price of a skirt rises from $20 to $35, what is the price elasticity of demand? (Use the midpoint method.)
A) 0.33 B) 0.25 C) 1.00 D) 1.33 E) 3.00
Suppose that British tastes changed and American goods become more desirable to British citizens. There would be
a. a leftward shift of the supply of pounds curve. b. a movement downward along the supply of pounds curve. c. a movement upward along the supply of pounds curve. d. a rightward shift in the supply of pounds curve. e. a rightward shift in the demand curve for pounds..
If adopted by a firm, a labor-saving piece of technology is one that would:
A. decrease labor supply. B. decrease labor demand. C. increase labor supply. D. increase labor demand.