Refer to Figure 4-3. What area represents the deadweight loss at the equilibrium price of P1?
A) C + E B) C + E + H
C) G + H D) There is no deadweight loss at the price of P1.
D
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Refer to the below graphs. (Assume that the pre-migration labor force in Country A is 0d and that it is 0u in country B.) Domestic output in country A will, after the immigration:
A. Decrease by area abc
B. Decrease by area adec
C. Increase by area abc
D. Increase by area adec
An increase in U.S. taste for European goods will lead to ______ demand for euros and a(n) ______ exchange rate for the euro.
a. increased; lower b. decreased; lower c. increased; higher d. decreased; higher
What turns a business cycle into a structural stagnation?
A. Multiple business cycles in a short period of time. B. An upturn that exceeds potential. C. A trough that is lower than the peak. D. A slow upturn that keeps the economy below trend.
The period of growth from the level of the previous peak to a new peak in Real GDP is called a
A. recession. B. expansion. C. recovery.