Recessionary gap is the amount by which the equilibrium level of real GDP exceeds potential GDP.
Answer the following statement true (T) or false (F)
False
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Which of the following would not be classified as an oligopolistic industry?
A) Defense contractors. B) The recorded music industry. C) The tobacco industry. D) The women's clothing industry.
Marginal profit is positive at all positive output levels.
Answer the following statement true (T) or false (F)
Which of the following individuals would most likely favor an increase in government spending, as opposed to a tax cut, as the basis for expansionary fiscal policy?
a. "There must be a constant philosophical prejudice against any intervention by the state into our lives, for by definition such intervention abridges liberty."-William Simon b. "The bastards [read politicians] can't spend what they don't have."-Howard Jarvis c. "The family that takes its mauve and cerise, air-conditioned, power-steered, power-braked automobile through cities that are badly paved, made hideous by litter, [and] blighted buildings...to picnic beside a polluted stream amid the stench of refuse may properly reflect on the curious unevenness of their blessings."-J.K. Galbraith d. "Public expenditures are made for the primary benefit of the middle class and financed with taxes on the poor and rich."-Director's Law
The Bretton Woods system relied on
A. a flexible exchange-rate system. B. a fixed exchange-rate system. C. an exchange-rate union. D. a floating exchange-rate system.