To eliminate a recessionary gap, the expenditure schedule should be
a. shifted downward.
b. shifted upward.
c. made steeper.
d. made flatter.
b
You might also like to view...
If the average total cost curve is always above the demand curve of a monopolist: a. that monopolist will suffer economic losses
b. entry will occur, forcing the monopolist to reduce price and expand output. c. the monopolist will earn an economic profit. d. the monopolist must be producing inefficiently.
Under the gold standard of a century ago, the world's commerce
a. nearly collapsed before the beginning of World War I. b. was at the mercy of gold discoveries. c. grew steadily without interruption from monetary disturbances. d. grew when the gold stock grew slowly, and shrank when gold discoveries increased.
The estimated demand for a good is
= 4800 - 16P - 0.65M - 1.5PRwhere Q is the quantity demanded of the good, P is the price of the good, M is income, and PR is the price of related good R. If income decreases by $2,000, all else constant, quantity demanded will ________ by ________ units.
A. increase; 1.30 units B. increase; 1,300 units C. decrease; 65 units D. decrease; 6.5 units
If productivity increases by 2 percent but wages increase by 3 percent, then it is most likely that the:
A. short-run aggregate supply curve will shift down (to the right). B. short-run aggregate supply curve will shift up (to the left). C. aggregate demand curve will shift left. D. short-run aggregate supply curve will not shift.