Within the framework of the Keynesian Cross model, if an economy is operating at a real GDP less than full-employment real GDP:
a. a recessionary gap exists
b. an inflationary gap exists
c. aggregate expenditures will rise
d. the general level of prices will rise
a
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The demand curve facing a single-price monopoly
A) lies below the marginal revenue curve. B) lies above the marginal revenue curve. C) is the same as only the marginal revenue curve. D) is the same as only the marginal cost curve. E) is the same as both the marginal revenue curve and the marginal cost curve.
The entry of China and other developing countries into the global economy ________ the value of marginal product of factory workers in the United States and ________ their wage rate
A) increases; lowers B) decreases; raises C) decreases; lowers D) increases; raises
U.S. Gross National Product includes goods produced by:
A. foreign firms on U.S. soil. B. U.S. firms on foreign soil. C. foreign firms on foreign soil. D. None of these statements is true.
If the Fed buys U.S. Treasury bills and bonds to finance deficits, this means that the government is financing the deficit by expanding the money supply, which will eventually lead to
A. excess aggregate supply. B. deflation. C. excess aggregate demand. D. an appreciation of the dollar.