The growth rate in potential GDP is equal to the growth rate in the population
a. True
b. False
Indicate whether the statement is true or false
False
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Refer to Table 3-2. The table above shows the demand schedules for caviar of two individuals (Ari and Sonia) and the rest of the market. If the price of caviar rises from $65 to $75, the market quantity demanded would
A) decrease by 52 oz. B) decrease by 36 oz. C) increase by 36 oz. D) increase by 52 oz.
Following a decline in the inflation rate, once long-term wage contracts are renegotiated and all prices in the economy adjust to their new equilibrium:
a. the economy will move up the short-run Phillips curve. b. the short-run Phillips curve will shift to the left. c. the economy will return to the vertical Phillips curve. d. the aggregate supply curve will shift to the right. e. the aggregate demand curve will shift to the right.
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the short run would be:
A. P3 and Y1. B. P2 and Y1. C. P2 and Y3. D. P1 and Y2.
Frequent-guest rates offered by hotel chains are an attempt to
a. decrease competitors' access to distribution channels. b. develop a cost advantage independent of scale. c. increase customers' switching costs. d. overcome the perishability of the hotel "product."