An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase
B. increase; increase
C. decrease; decrease
D. increase; decrease
Answer: D
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Over the past decade, the incomes of the top 1 percent have increased while the incomes of the middle class declined. These changes mean that the Lorenz curve moved ________ the 45 degree line and the Gini ratio has ________
A) closer to; decreased B) closer to; increased C) further away from; decreased D) further away from; increased
If the elasticity of substitution of a production function is equal to zero, then this production function is a
A) linear production function B) fixed proportion production function C) Cobb-Douglas production function D) None of above.
TANF stands for _____
a. Temporary Aid to Needy Families b. Temporary Assistance to Needy Families c. Transitory Aid to Needy Families d. Transitory Assistance to Needy Families
With free entry:
A. the long run market supply curve is horizontal at the market price. B. the long run market supply curve is vertical at the market price. C. the short and long run market supply curves are the same. D. there is a known and limited number of potential suppliers that can produce a good in the long run.