The amount by which an aggregate expenditures schedule must shift upward to achieve the full-employment GDP is a(n):
A. Inflationary expenditure gap
B. Recessionary expenditure gap
C. Expenditure multiplier gap
D. Negative net export gap
B. Recessionary expenditure gap
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All of the following are included in gross private domestic investment expenditure EXCEPT a
A) business's purchase of a fleet of cars. B) household's purchase of a new house. C) business's purchase of another company's stock. D) a retail store's purchase of shoes to add to its inventory.
Phil sells duck calls in a perfectly competitive market. If duck calls sell for $10 each and average total cost per unit is $11 at the profit-maximizing output level, then in the long run
a. more firms will enter the market. b. some firms will exit from the market. c. the equilibrium price per duck call will fall. d. average total costs will fall.
The increase in the unemployment rate during a recession is associated with which type of unemployment?
A. Structural unemployment B. Cyclical unemployment C. Nominal unemployment D. Frictional unemployment
Most modern economic analysis is normative in nature, but involves questions with positive aspects
Indicate whether the statement is true or false