Refer to the table. If the full-employment real GDP is $100, the:
A. inflationary expenditure gap is $30.
B. inflationary expenditure gap is $10.
C. recessionary expenditure gap is $30.
D. recessionary expenditure gap is $10.
D. recessionary expenditure gap is $10.
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Which of the following will cause an increase in economic growth?
A) a reduction in the unemployment rate B) a reduction in labor force participation C) an increase in human capital D) a reduction in the stock of physical capital
Suppose the economy is initially experiencing a recessionary ga
A) a reduction in the size of the recessionary gap and increase in real GDP. B) an increase in the size of the recessionary gap and decrease in real GDP. C) an inflationary ga
If the CPI was 132.5 at the end of last year and 137.5 at the end of this year, the inflation rate over these two years was
A) 3.6 percent. B) 3.8 percent. C) 5.0 percent. D) None of the above answers is correct.
To calculate the time required for real GDP to double, we _____
a. divide the annual growth rate by 72 b. divide 72 by nominal GDP c. divide real output by 72 d. divide 72 by the annual growth rate e. multiply real GDP by 72