Figure 10-14
At which of the following points in would short-run equilibrium occur immediately following an adverse supply-side shock?
a.
F
b.
G
c.
H
d.
I
e.
J
d
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John has been laid off from his job because of a general downturn in the economy. John's unemployment is best classified as
A) structural. B) cyclical. C) frictional. D) full. E) avoidable.
If the economy is at long run equilibrium then
A) real GDP equals potential GDP. B) nominal GDP equals potential GDP. C) real GDP cannot be equal to potential GDP. D) real GDP can be greater than, less than, or equal to potential GDP.
Reducing transfer payments is an appropriate way to counteract a recessionary gap
a. True b. False Indicate whether the statement is true or false
The demand curve for a product will be more elastic when:
a) The amount of income spent on the product is small. b) There are many substitutes. c) Quantity demanded is unresponsive to a change in price. d) Consumers have insufficient time to adjust to changes in price.