When an economy is experiencing a negative output gap, there is:
A. inflationary pressure due to low demand.
B. inflationary pressure due to high demand.
C. significant inflationary pressure due to low demand.
D. significant inflationary pressure due to high demand.
A. inflationary pressure due to low demand.
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When wages decrease a. the substitution effect increases the quantity of labor supplied. b. the substitution effect increases the supply of labor
c. the income effect increases the quantity of labor supplied. d. the income effect increases the supply of labor.
If Japan has a current account surplus, then it must:
A. have an offsetting capital account deficit. B. also have a surplus in its capital account. C. import more goods than it exports. D. have a positive balance of payments.
Refer to the above table. At what quantity does diminishing marginal utility set in?
A. after 1 B. after 0 C. after 10 D. after 2
The fast-food industry is not considered perfectly competitive because
A. there is a small number of dominant firms. B. the firm's products are not homogeneous. C. there is a very large number of firms. D. entry and exit are strictly regulated by the government.