Potential output is:
A. equal to actual output.
B. the same as the natural rate of unemployment.
C. the maximum sustainable amount of output.
D. also known as the output gap.
Answer: C
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Which of the following shifts the supply curve for gasoline rightward?
A) a situation in which the quantity demanded exceeds the quantity supplied B) an increase in the price of gasoline C) a decrease in the price of a resource used to produce gasoline, such as crude oil D) an increase in the demand for gas-guzzling, sport utility vehicles
The multiplier effect on real GDP occurs because
What will be an ideal response?
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The best point for society would be
A. either Point B or Point C, as the total amount being produced at either of these points is approximately the same. B. at any of the labeled points, as all of the points represent an efficient allocation of resources. C. Point C, as at this point there are approximately equal amounts of LCD and OLED televisions being produced. D. indeterminate from this information, as we don't have any information about the society's desires.
Which of the following would likely be studied in a macroeconomics course?
A) the unemployment rate B) total output for an economy C) the inflation rate D) all of the above