If actual GDP is less than potential GDP:
A. potential GDP will fall.
B. the price level will rise.
C. investment spending will fall.
D. the actual unemployment rate will be higher than the natural unemployment rate.
D. the actual unemployment rate will be higher than the natural unemployment rate.
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The ________ the price level, the ________
A) higher; smaller the supply of money B) higher; greater the demand for money C) higher; greater the supply of money D) lower; greater the demand for money E) higher; smaller the demand for money
In order to maximize its profit, a single-price monopoly produces the amount of output so that
A) P = MC. B) MR = MC. C) P = MC - MR. D) P = MR. E) P = ATC.
Most of the world's nations went off the gold standard in the year __________.
Fill in the blank(s) with the appropriate word(s).
Refer to Figure 3-6. The figure above represents the market for coffee grinders. Compare the conditions in the market when the price is $15 and when the price is $21. Which of the following describes how the market differs at these prices?
A) At each price there is a shortage; the shortage is greater at $15 than at $21. B) At each price there is a shortage; firms will raise the equilibrium price in order to eliminate the shortage. C) The difference between quantity supplied and quantity demanded is greater at $21 than at $15. D) At each price the demand for coffee grinders exceeds the supply of coffee grinders.