The aggregate cost of unemployment can be measured by the:
A. amount by which actual GDP exceeds potential GDP.
B. amount by which potential GDP exceeds actual GDP.
C. excess of real GDP over nominal GDP.
D. excess of nominal GDP over real GDP.
B. amount by which potential GDP exceeds actual GDP.
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When the interest rate on a bond is above the equilibrium interest rate, in the bond market there is excess ________ and the interest rate will ________
A) demand; rise B) demand; fall C) supply; fall D) supply; rise
The amount of investment demand at each interest rate suddenly falls. If the Fed holds to an unchanged money supply target, the change in GDP is __________ if it had held to an unchanged interest rate target
A) greater than B) less than C) the same as
Wearing an expensive business suit to an interview is a kind of
a. Screening mechanism b. Signaling mechanism c. Way to waste money d. None of the above
Exhibit 1A-8 Straight line relationship
Which of the following would cause a shift in the relationship shown in Exhibit 1A-8?
A. A fall in household incomes. B. A fall in the price of pizza. C. A fall in the quantity of pizza that people wish to purchase. D. A rise in the price of pizza.