A recessionary gap results when
A. aggregate demand is above the level consistent with full employment.
B. aggregate demand is below the level consistent with full employment.
C. aggregate supply and aggregate demand are not in short-run equilibrium.
D. aggregate supply decreases.
Answer: B
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Other things remaining the same, the greater the expected profit
A) the less the amount of investment. B) the greater the amount of investment. C) the steeper is the investment demand curve. D) the flatter is the investment demand curve.
Harder, more unpleasant, less convenient work is usually ______ paid than the more conventional occupations.
Fill in the blank(s) with the appropriate word(s).
If a French importer has to write a 4,000 euro check to cover a $8,000 purchase from the United States, the exchange rate is ______ dollar to a euro.
Fill in the blank(s) with the appropriate word(s).
In calculating multifactor productivity growth, the elasticity of output to changes in capital (given as "b" in the textbook) is assumed to be
A) one minus the population growth rate. B) the depreciation rate. C) the share of capital income in GDP.