The situation in which actual output exceeds potential output
a. is impossible because all resources are employed to produce potential output
b. is possible only in times of high unemployment
c. is possible only if the unemployment rate is negative
d. is possible only in the long run
e. creates pressure for inflation
E
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Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity. What happens in the market for solar panels if the government offers tax breaks to encourage manufacturers to produce more solar panels?
A) D increases, S no change, P and Q increase B) D no change, S increases, P decreases, Q decreases C) S increases, D no change, P decreases, Q increases D) D and S increase, P and Q decrease
The output level produced by a profit-maximizing monopolist:
a. exceeds the level that would maximize social welfare. b. is allocatively efficient. c. is less than the level that would maximize social welfare. d. always results in economic profits in the long run.
Spending on programs that Congress authorizes ________ is known as discretionary spending.
A. by prior law B. on an annual basis C. on an off-budget emergency basis D. after approval from the Federal Reserve
After Hurricane Katrina destroyed much of the infrastructure of the United States Gulf Coast,
A) labor became more valuable. B) labor became less valuable because of the capital that had been destroyed. C) labor became less valuable because FEMA's response wasn't timely. D) labor became more valuable because of the rebuilding effort.