An inflationary gap can be closed by an increase in government spending
Indicate whether the statement is true or false
F
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People pursue ________ projects in the market and ________ projects in government
A) their own; their own B) their own; others' C) private; public D) individualistic; socialistic
Total cost of production is the sum of total variable cost and total fixed cost. If the total fixed cost alone increases:
A. the average total cost curve shifts downward at all output levels. B. the marginal cost curve shifts upward at all output levels. C. the vertical distance between the average total cost curve and average variable cost curve increases at all output levels. D. the average variable cost curve shifts upward at all output levels.
The level of output at which the short-run aggregate supply curve and the aggregate demand curve intersect is the full-employment level of GDP
Indicate whether the statement is true or false
If policymakers do nothing in response to a recessionary gap, what will happen?
A. A rapid movement toward lower unemployment and higher inflation B. A rapid movement toward lower unemployment and lower inflation C. A slow movement toward lower unemployment and higher inflation D. A slow movement toward lower unemployment and lower inflation