Which of the following fiscal policy actions would be appropriate if the economy is experiencing an inflationary gap?
A. an increase in taxes
B. an increase in government spending
C. an increase in the money supply
D. a decrease in interest rates
Answer: A
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The table gives data on the production and prices in a small economy. Use 2012 as the base period. Using the chained-price method, what is the growth rate of real GDP from 2012 to 2013?
What will be an ideal response?
In a perfectly competitive market, the
a. market demand curve is horizontal b. short-run market supply curve is horizontal c. short-run market demand curve slopes upward d. short-run market supply curve slopes downward e. market demand curve slopes downward
Global warming is an externality
Indicate whether the statement is true or false
When there is full employment, there is no _____ unemployment.
A. frictional B. structural C. cyclical