Macroeconomic equilibrium occurs when
A. the quantity of output demanded equals the quantity of output supplied.
B. the price level is increasing.
C. the price level is decreasing.
D. there is very low cyclical unemployment.
A. the quantity of output demanded equals the quantity of output supplied.
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Refer to Figure 26-11. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, and the Federal Reserve pursues no policy, then at point B
A) the unemployment rate is very, very low. B) incomes and profits are rising. C) firms are operating above their normal capacity. D) the economy is below full employment. E) there is pressure on wages and prices to rise.
According to economic theory, what is the optimal percentage of GDP to be spent on medical care?
a. Whatever amount we are currently spending b. 10 percent c. 8 percent d. 12 percent e. No widely accepted way to determine the optimal percentage
Recall the Application about how cable TV providers respond to the threat of potential competitors to answer the following question(s).Recall the Application. Because cable TV had to fend off potential entrants into their markets, cable TV providers are considered ________ as long as they successfully deterred entry.
A. insecure monopolists B. duopolists C. perfect competitors D. monopolistic competitors
Which of the following schools of thought advised against fine-tuning, due to our limited understanding of the economy?
A) Monetarist B) Keynesian C) New Keynesianism D) New growth E) Neoclassical