When the economy is in short-run equilibrium, there will be ________ output gap.
A. only a recessionary
B. only an expansionary
C. either a recessionary or an expansionary
D. no
Answer: C
You might also like to view...
An overcrowded beach is an example of
a. a positive externality. b. a Tragedy of the Commons. c. an environmentally inefficient allocation of resources. d. an economically unfair allocation of resources.
The federal funds rate is the interest rate the:
A. banks charge individual investors for Fed funds. B. banks charge each other in the Fed funds market. C. government charges banks for Fed funds. D. Fed charges banks for Fed funds.
The price of water affects the value people will place on water because
What will be an ideal response?
Answer the following statements true (T) or false (F)
1. As long as government officials have to be elected, they are always held accounted for their policy decisions and choices. 2. Economic analysis would focus on the size of the government, in order to assess whether or not it fosters economic efficiency. 3. It is generally believed that, because of the election process, the incentives and pressures for internal efficiency are stronger in the public sector than in the private sector. 4. Critics of government contend that the market system creates incentives and pressures for internal efficiency which are absent in the public sector. 5. "Good economics" is about marginal costs and marginal benefits of specific projects; "good politics" is more about clear benefits and hidden costs.