The gap between potential GDP and real GDP had been as large as 7 percent during the worst of the 2007-2009 recession. By 2015, the gap
A) was positive, with real GDP exceeding potential GDP.
B) had been eliminated.
C) remained at 7 percent.
D) was still nearly 3 percent.
D
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Use the following figure to answer the question below.
The combination of zero pounds of corn and eighty pounds of green beans is
A. efficient. B. not attainable. C. inefficient. D. local.
According to the graph shown, if the market goes from equilibrium to having its price set at $10 then:
A. consumer surplus will decrease from (A + B + C) to (B + C) only.
B. consumer surplus will increase from (A + B + C) to A only.
C. consumer surplus (B + C) will transfer to producers.
D. consumer surplus will decrease by (B + C).
Utility is
a. easily measured because all people derive the same utility from consumption b. easily measured because it is an objective concept c. easily measured because it is a subjective concept d. hard to measure because it is a subjective concept e. hard to measure because it is an objective concept
Which of the following is an example of an automatic stabilizer?
a. Decrease in tax rates by Congress in times of unemployment b. Decrease in tax rates by Congress in times of inflation c. Increase in government defense spending during war d. Increase in unemployment compensation during recession e. Decrease in welfare programs during inflation