How much is the output gap if short-run output is $18.0 trillion and potential output is $18.0 trillion?
What will be an ideal response?
$0
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Labor costs $20 per worker and capital costs $100 per unit. Then, according to the above table, which of the following options for pizza production is technologically efficient?
A) Option 1 B) Option 2 C) Option 4 D) All of the above listed options are technologically efficient.
The U.S. is planning on imposing quotas on tires imported from china. Domestic retailers predict this will result in an increase in consumer prices on tires by about $10
Use a supply and demand graph with brief explanation to show the effects of an import quota. Assume the quota is binding.
Suppose that the economy is operating in full-employment equilibrium along the vertical section of the aggregate supply curve. If the aggregate demand curve is reduced by $100 billion in order for the price level to decline by 5 percent, and if the marginal propensity to consume (MPC) is 0.75, then what change in taxes would generate the desired price reduction?
a. $300 billion. b. -$75 billion. c. -$33.3 billion. d. -$25 billion.
A concentration ratio provides a better assessment of market power than the Herfindahl-Hirschman index does
a. True b. False Indicate whether the statement is true or false