An inflationary gap occurs when the ______ is greater than the ______.
a. aggregate supply; aggregate demand
b. actual output; potential output
c. long-run equilibrium; short-run equilibrium
d. aggregate supply; aggregate demand
b. actual output; potential output
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If the Federal Reserve increases the money supply, ceteris paribus, the:
a. rate of interest decreases. b. rate of interest increases. c. rate of interest is unaffected. d. Fed sells bonds.
Firms in a perfectly competitive market produce at minimum average cost in the short run and the long run
a. True b. False Indicate whether the statement is true or false
Refer to the graph shown.
The middle quintile (the middle fifth) of families earn:
A. 32.6 percent of the income. B. 22.1 percent of the income. C. 10.7 percent of the income. D. 15.3 percent of the income.
What mechanism will be established for the PPACA so that individuals can buy health insurance?
What will be an ideal response?