Which of the following is true of a recessionary gap?
a. It develops when the expected price level is less than the actual price level
b. In the long run, this gap closes when resource suppliers negotiate lower resource payments.
c. It measures the amount by which actual output is greater than the economy's potential output.
d. In the long run, this gap closes when the short-run aggregate supply curve shifts rightward.
e. In the long run, this gap closes when the aggregate demand curve shifts rightward.
b
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The price of gasoline in Europe is about three times that in the United States, mainly because the European gas tax is higher than the U.S. gas tax
How would an increase in the gas tax in the United States to the European level change carbon emissions? Would this tax increase bring greater efficiency or would it increase deadweight loss?
If voters prefer alternatives closer to their most preferred outcome to alternatives farther away from their most preferred outcome, we can say that voters have _____
a. single-peaked preferences b. double-peaked preferences c. rational preferences d. irrational preferences
Four propane delivery firms have a tacit agreement to charge a service fee of $50 in addition to $5 per gallon of propane. If the firms' cost of propane increases and one of the four firms advertises that it will increase the cost of a gallon of propane to $5.50 next month, this is an example of ________.
A) a preannouncement B) a precommitment C) price leadership D) a meet-the-competition clause
In the recession that started in 2008, the savings rate:
A. increased. B. decreased. C. stayed the same. D. became negative.