A recessionary gap exists when potential GDP
a. falls short of equilibrium GDP.
b. exceeds equilibrium GDP.
c. equals equilibrium GDP.
d. All of the above are correct.
b
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When marginal cost is greater than average total cost, the
A) marginal cost decreases as output increases. B) marginal cost does not change as output increases. C) average total cost increases as output increases. D) average total cost decreases as output increases.
The highest-income fifth of the U.S. population earns more than 50 percent of all income
a. True b. False Indicate whether the statement is true or false
Which of the following will lead to a depreciation of the U.S. dollar against the British pound?
A) an increase in British demand for U.S. imports B) an increase in U.S. interest rates C) a decrease in British demand for U.S. assets D) a decrease in U.S. demand for British goods
One worker produces 10 rocking chairs. If diminishing returns have already set in, a firm will need to hire more than two workers to produce 20 rocking chairs.
Answer the following statement true (T) or false (F)