When the current state of the economy is such that Real GDP is less than Natural Real GDP, the economy is in a(n) ____________________ gap. In this situation, the (actual) unemployment rate is ___________ than the natural unemployment rate, and there is a ________________ in the labor market
A) recessionary; greater; shortage
B) inflationary; less; shortage
C) inflationary; greater; surplus
D) recessionary; greater; surplus
E) recessionary; less; shortage
D
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In the short run, a firm operating as a monopolistic competitor will produce to the point at which
A) MR = ATC. B) MC = ATC. C) P = MC. D) MR = MC.
The corporate tax applies to firms’ total revenues.
Answer the following statement true (T) or false (F)
What is typically the main cost of pursuing a college education?
A. income forgone by not working B. tuition C. room and board D. books and supplies
The Federal Open Market Committee is responsible for
A. Providing central banking services to individual banks. B. Check cashing services for large corporations. C. Determining broad Fed policy. D. The Fed's daily activity in financial markets.