The output gap is zero when
A) Actual real GDP > Natural real GDP.
B) Actual real GDP = Natural real GDP.
C) Actual real GDP < Natural real GDP.
D) Natural real GDP = 0.
B
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The two cornerstones of Classical economics are the Quantity Theory and
A) Liquidity Preference Theory. B) disequilibrium analysis. C) Say's Law. D) the Phillips Curve.
Suppose a market has the demand function Qd=20-0.5P. Using the midpoint method, what is the price elasticity of demand between $30 and $40?
Unintended changes in inventories:
A. cause the economy to move away from the equilibrium GDP. B. are treated as components of consumption. C. bring actual investment and saving into equality only at the equilibrium level of GDP. D. bring actual investment and saving into equality at all levels of GDP.
In the above figure, a sales tax of $1 per unit imposed on sellers shifts the
A) demand curve rightward. B) supply curve leftward. C) demand curve leftward. D) supply curve rightward.