Which of the following is true?
a. The GDP gap is the difference between actual real GDP and full-employment real GDP.
b. We desire economic growth because it increases the nation's standard of living.
c. Economic growth is measured by the annual percentage increase in a nation's real GDP.
d. Discouraged workers are a reason critics say the unemployment rate is understated.
e. All of these are true.
e
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Why is the manager of a company typically not the same person as an entrepreneur?
What will be an ideal response?
Suppose the intersection of the IS and LM curves is to the left of the FE line. A decrease in the price level would most likely eliminate a disequilibrium among the asset, labor, and goods markets by
A) shifting the LM curve down and to the right. B) shifting the IS curve up and to the right. C) shifting the IS curve down and to the left. D) shifting the FE curve to the left.
Cost-push inflation can be started by
A) a decrease in the money wage rate. B) an increase in the money prices of raw materials. C) an increase in the quantity of money. D) an increase in government expenditure on goods and services. E) a decrease in government expenditure on goods and services.
Which of the following statements is true?
a. In the long run, for any output level a firm can select a plant size that will allow it to minimize average total cost. b. In the long run, the firm is committed to a particular plant size, and can only vary such resources as labor and some material inputs. c. In the long run, the firm is committed to a particular plant size, and thus cannot vary any input. d. The long-run average cost curve connects the minimum points on marginal cost curves for different plant sizes.