As the best measure of the size of economic fluctuations associated with a business cycle, economists typically use
A) real GDP.
B) the deviation of real GDP from potential GDP.
C) potential GDP.
D) the deviation of real GDP from nominal GDP.
B
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When an economy experiences a one-time increase in productivity, there is an immediate increase in ________
A) the saving rate B) the capital-labor ratio C) the depreciation rate D) consumption per worker
A general equilibrium analysis of a price change in the corn chip market would include an investigation of the impacts in
A) the television market. B) the coffee market. C) the salsa market. D) All of the above.
A person who is currently not working and has stopped looking for a job because he or she is convinced there is no job available is classified as a
A) discouraged worker. B) disgruntled worker. C) depressed worker. D) dissatisfied worker.
According to Say's law, there cannot be overproduction of goods and services because:
a. planned aggregate expenditures sometimes fall short of total output. b. prices and wages are "sticky" or inflexible in the downward direction. c. demand creates its own supply. d. supply creates its own demand.