In Table 9.3, Market 3 would be in equilibrium if buyers believed lemons account for:
A. 45% of the market.
B. 50% of the market.
C. 55% of the market.
D. 60% of the market.
Answer: B
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An inflationary gap is occurs when
A) real GDP is less than potential GDP. B) real GDP exceeds potential GDP. C) real GDP equals potential GDP. D) the economy is at full employment.
Which of the following is NOT the cause of an adverse productivity shock to the labor market?
A) a decline in the quantity of non-labor factors of production B) a drop in multifactor productivity C) a decrease in the labor force D) none of the above
According to the partisan party model,
a. the primary emphasis of the liberal party is on full employment and income distribution. b. the liberal party stresses price stability as their most important goal. c. employment stability is most important to the conservative party. d. only two parties exist. e. Both a and d.
Refer to the information provided in Table 23.7 below to answer the question(s) that follow. Table 23.7
Refer to Table 23.7. The equilibrium level of aggregate output equals
A. $400 billion. B. $600 billion. C. $800 billion. D. $1,000 billion.