How is it possible for the economy to have an inflationary gap?
A. Equilibrium is at a GDP level below full employment.
B. Equilibrium is at a GDP level equal to full employment.
C. Equilibrium is at a GDP level above full employment.
D. GDP is rising at full employment.
E. GDP is falling at full employment.
Answer: C
You might also like to view...
Which following segment(s) of the aggregate supply curve represents the Phillips curve trade-offs?
a. horizontal segment b. horizontal and the intermediate segments c. intermediate segment d. intermediate and the vertical segments e. vertical segment
Monopolies are socially inefficient because the price they charge is
a. equal to marginal revenue. b. above marginal cost. c. equal to demand. d. above demand.
Gaining control of a corporation through stock purchase or exchange is known as
a. a merger b. an acquisition c. a partnership d. a cooperation e. a joint venture
The inverse relationship between quantity demanded and price of a good or service can be explained, in part, by
A. a shift in the demand curve. B. diminishing marginal utility only. C. the real income effect. D. diminishing marginal utility and the rule of equal marginal utilities per dollar.