What does the GDP gap measure?
The GDP gap = potential real GDP ? actual real GDP. It measures the loss of potential output associated with unemployment which can never be realized (it measures the economic cost of unemployment).
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Which statement is true?
A. The supply of loanable funds is less elastic than the supply of land. B. The supply of loanable funds is more elastic than the supply of land. C. The supply of loanable funds is as elastic as the supply of land.
An important condition for a contestable market is:
A. all producers have different technologies. B. there are sunk costs. C. there are high transaction costs. D. existing firms cannot respond quickly to entry by lowering their price.
One of the most widely used methods for examining consumers' cognitive processing of advertising messages is assessment of their ___, the thoughts that occur to them while reading, viewing, and/or hearing a communication
Fill in the blank(s) with the appropriate word(s).
After the Great Recession when the recovery turned out to be very weak, economic policy in the U.S. had to turn forcefully toward fiscal policy because of the following reasons, except:
A. Monetary policy's cyclical asymmetry B. The banking system fell into a liquidity trap C. Interest rates had already been cut to very low levels D. The time lags of monetary policy