The recessionary gap is given by the difference between potential GDP and real GDP
a. True
b. False
Indicate whether the statement is true or false
False
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From an initial IS-LM equilibrium with normally-sloped IS and LM curves, the money supply falls. At the new IS-LM equilibrium we have some combination of a ________ income and a ________ interest rate
A) higher, higher B) higher, lower C) lower, higher D) lower, lower
Suppose an increase in aggregate demand raises the price level. What would be the effect on the total money demand curve?
What will be an ideal response?
What are the four main ways in which the CPI is an upward-biased measure of the price level?
What will be an ideal response?
Which of the following is not an advantage of the chain weighted CPI over the fixed CPI?
a. the chain-type index includes newer products b. the chain index incorporates the increase in the quality of goods c. the chain index includes discounting and the substitution of products d. the chain index includes the price of the product only at standard prices