Refer to the diagram above. The straight line E drawn through the wavy lines would provide an estimate of the:
a. Recovery trend
b. Recession fluctuation
c. Natural rate of unemployment
d. Economic growth trend
Ans: d. Economic growth trend
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The curve labeled A in the above figure is a
A) short-run aggregate demand curve. B) short-run aggregate supply curve. C) long-run aggregate demand curve. D) long-run aggregate supply curve.
Keynes used the term "animal spirits" to refer to
a. policy makers harming the economy in the pursuit of self interest. b. arbitrary changes in attitudes of household and firms. c. mean-spirited economists who believed in the classical dichotomy. d. firms' relentless efforts to maximize profits.
Which of the following statements about GDP is correct?
a. Nominal GDP values production at current prices, whereas real GDP values production at constant prices. b. Nominal GDP values production at constant prices, whereas real GDP values production at current prices. c. Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process. d. Nominal GDP values production at the cost of the resources used in the production process, whereas real GDP values production at market prices.
The opportunity cost of doing or getting something is best and fully defined as:
A. The difference between the marginal cost and benefit of doing something B. The materials used in doing or getting something C. The value of the best alternative that is given up in order to do or get something D. The money spent in doing or getting something