If the output gap equals 180 billion, then:
A. there is significant cyclical unemployment.
B. there is an expansionary gap.
C. potential GDP exceeds actual GDP.
D. cyclical unemployment equals the sum of structural and frictional unemployment.
Answer: B
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If the quantity of the variable on the y-axis increases by 3 when the quantity of the variable on the x-axis increases by 4, then the slope of the curve equals
A) 3. B) 4. C) 3/4. D) 4/3. E) 1.
External economies of scale arise when the cost per unit
A) falls as the industry grows larger and rises as the average firm grows larger. B) rises as the industry grows larger and falls as the average firm grows larger. C) falls as the industry and the average firm grows larger. D) remains constant over a broad range of output. E) rises as the industry and the average firm grows larger.
Which of the following groups has the highest infant mortality rate?
a. middle-income economies b. low-income economies c. high-income economies d. Western European economies e. all the world's economies
When the Social Security payroll tax exceeds the wage limit, it becomes a ________ tax.
a. progressive b. regressive c. excise d. marginal