The effects of foreign competition on the U.S. textile industry would be studied by a microeconomist rather than a macroeconomist
a. True
b. False
Indicate whether the statement is true or false
True
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Using the aggregate expenditure-output model, assume the aggregate expenditures (AE) line is below the 45-degree line at full-employment GDP. This vertical distance is called a(n):
a. inflationary gap. b. recessionary gap. c. negative GDP gap. d. marginal propensity to consume gap.
When households and businesses interact in resource markets money
a. is not exchanged b. is flowing toward businesses c. is flowing toward households d. is not used at all e. is flowing to both businesses and households
After Britain returned to the Gold Standard in the 1920s, the British pound was
A) undervalued, contributing to a long period of inflation. B) undervalued, contributing to a long period of recession. C) overvalued, contributing to a long period of inflation. D) overvalued, contributing to a long period of recession. E) value about right, leading to a long period healthy growth with almost no inflation.
Refer to the above table. Assume the consumer spends his entire income. If the consumer's optimum at the current price of a movie is at 4 hotdogs and 4 movies, and the price of a hotdog is $1, what is the consumer's income?
A. $20 B. $40 C. $28 D. $16