Using the data in the above table, in the short-run macroeconomic equilibrium, there is
A) an inflationary gap of $1 trillion.
B) an inflationary gap of $2 trillion.
C) a recessionary gap of $1 trillion.
D) a recessionary gap of $2 trillion.
A
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Public goods are overproduced in the marketplace
a. True b. False Indicate whether the statement is true or false
A situation in which the market system allocates too few resources to the production of a given activity is known as
A) market allocation. B) market failure. C) market efficiency. D) market signaling.
Despite the cut in taxes during the 1980s, federal receipts rose all but one year during that decade.
Answer the following statement true (T) or false (F)
During the 1990s positive technological change in the production of chicken caused the price of chicken to fall. Holding everything else constant, how would this affect the market for pork (a substitute for chicken)?
A) The demand for pork would decrease and the equilibrium price of pork would decrease. B) The demand for pork would increase because consumers could afford to buy more chicken and pork. C) The supply of pork would increase and the equilibrium price of pork would decrease. D) The demand for pork would decrease and the equilibrium price of pork would increase.