According to Okun's law, when cyclical unemployment increases from 2 to 3 percent, the recessionary gap widens from ________.
A. ?2 percent to ?3 percent
B. ?4 percent to ?6 percent
C. 4 percent to 6 percent
D. 0 percent to 1 percent
Answer: B
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A price-setting firm
A. can raise the price of its product and sell the same number of units. B. can lower the price of its product and sell more units. C. possesses little market power. D. sells a product that is not differentiated from the product sold by its rivals or sells in a limited geographic market area with only one or a few sellers.
The marginal propensity to consume domestic goods is the
A. MPC - MPM. B. MPC - MPS. C. MPC + MPM. D. MPC + MPS.
Protectionist policies often seek to shield domestic producers and domestic workers from ________ competition.
a. foreign b. local c. domestic d. unfair
A price level lower than equilibrium will cause quantity supplied to exceed quantity demanded
a. True b. False Indicate whether the statement is true or false