Refer to Figure 23-2. Suppose that the level of GDP associated with point N is potential GDP. If the U.S. economy is currently at point K,
A) firms are operating above capacity.
B) the economy is in recession.
C) the level of unemployment is equal to the natural rate.
D) the economy is at full employment.
B
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The demand for electricity is more elastic in the long run than in the short run because
A. consumers can shift to more efficient electrical appliances in the long run. B. solar energy will eventually replace electricity in the long run. C. government regulation of electricity producers is most effective in the long run. D. more electricity can be produced in the long run.
Macroeconomics would be concerned with
A) implications of changes in unemployment and inflation. B) the effects on individual consumers of changes in the price of gasoline for a business. C) the effects of a tax on beer. D) the effects of wage increases on steel manufacturers.
A tax is sometimes used by government to correct the problems associated with
A) negative externalities. B) positive externalities. C) internal benefits. D) external benefits.
Section 1 of the Sherman Antitrust Act makes it illegal to
A) form a monopolistically competitive firm. B) restrain trade. C) price discriminate. D) have an oligopoly.