A recessionary gap exists when the equilibrium level of GDP exceeds potential GDP.
Answer the following statement true (T) or false (F)
False
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Suppose there are 100 identical firms in the rag industry, and each firm is willing to supply 10 rags at any price. The market supply curve will be a
A) vertical line where Q = 10. B) vertical line where Q = 100. C) vertical line where Q = 1000. D) horizontal line where Q = 1000.
It is possible for a tax to "internalize" an externality
Indicate whether the statement is true or false
Unemployed workers in developing economies typically have access to various government programs like unemployment insurance, welfare, and food stamps
a. True b. False Indicate whether the statement is true or false
If the nominal GDP of a country in the year 2005 was$25 trillion and the GDP deflator (relative to the base year 2000 . was 125, the real GDP of this country was _____
a. $25 trillion b. $5 trillion c. $20 trillion d. $125 billion