Which one of the following could cause an inflationary gap?
A. Net exports are decreasing.
B. Price levels are too low.
C. Government spending is too high.
D. Unemployment occurs.
Answer: B
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"The market basket used to calculate the CPI is revised monthly to more accurately depict consumers' choices. The price data for the CPI are collected every month." Are the previous sentences true or false?
What will be an ideal response?
The figure above shows a local lawn cutting service's demand for labor curve when the price of cutting an acre of lawn is $50 per acre
If the market wage is $300 per day, the firm will NOT hire a fourth worker because the fourth worker would create A) an economic loss and the firm would shut down. B) additional revenue that exceeds the worker's wage. C) additional revenue that exceeds the worker's value of marginal product. D) additional revenue that falls short of the worker's wage.
Refer to Figure 13-8. What is the profit-maximizing output level?
A) 22 cases B) 24 cases C) 30 cases D) 38 cases
By 2006, about ________ of all U.S mortgages were subprimes
A) 10% B) 20% C) 30% D) 25%