If the equilibrium level of real GDP per year is greater than the full-employment level of GDP, then
A) the economy is at full employment with no price changes.
B) the economy expands the level of real GDP.
C) an inflationary gap occurs.
D) a recessionary gap occurs.
C
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A goldsmith with 100 gold coins in his safe and 100 receipts in circulation has a reserve rate of _______%.
Fill in the blank(s) with the appropriate word(s).
During the 1960s and 1970s, the U.S. trade balance was close to zero, but during the 1980s, the trade deficit ballooned to unprecedented levels due to:
A. a decline in national saving caused largely by rapidly rising government budget deficits. B. an inability of U.S. companies to compete in the international market. C. a worldwide recession that made it difficult for American companies to sell their products abroad. D. a decline in private saving that resulted from an upsurge in consumption.
If the marginal cost of adding a new line of products is $10 million, then Amazon should add the product
What will be an ideal response?
Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply. B. a reduction in aggregate demand. C. an increase in long-run aggregate supply. D. an increase in aggregate demand.