There is a recessionary gap when
A. equilibrium GDP is equal to full employment GDP.
B. equilibrium GDP is smaller than full employment GDP.
C. equilibrium GDP is larger than full employment GDP.
D. None of the choices are correct.
B. equilibrium GDP is smaller than full employment GDP.
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The shipbreakers of Alang are
A) a metaphysical representation of the WTO, deriving from Edgar Rice Burroughs' Princess of Mars. B) an early version of the Russian Ice-breaker of the Dnieper-Alang class. C) a capital-intensive industry. D) competing with pollution-producing industries in countries outside of India. E) doing environmentally conscious work.
Jim is haggling with a car dealer over the sale price of a used car. When he entered the store, it was empty. During the negotiations, a second customers walks in, interested in that particular car, and the storekeeper rejects Jim's offer. This is because
a. The car dealer's disagreement value decreased b. The car dealer's disagreement value increased c. The car dealer's disagreement value did not change d. None of the above
Why doesn't GDP change in the long run when the money supply changes?
A. Because in the long run, GDP is determined by the fundamental factors of growth, not the money supply. B. Because the money supply changes only in the short run and then returns to its long-run level. C. Because in the long run, GDP is determined by fiscal policy and not by monetary policy. D. Because in the long run, households adjust their savings to counteract any change in the money supply.
Capital inflows are debits and capital outflows are credits.
Answer the following statement true (T) or false (F)