An inflationary gap is the amount by which
A. the short-run equilibrium level of nominal GDP is above the short-run level of real GDP.
B. total planned production exceeds total planned real expenditures in the long run.
C. the short-run equilibrium level of nominal GDP is below the short-run level of real GDP.
D. the short-run equilibrium level of real GDP is above the full-employment level of real GDP.
Answer: D
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Characteristics of a perfectly competitive market include:
A. the absence of transaction costs. B. differentiated products. C. few sellers, some with a large market share. D. All of these are characteristics of a perfectly competitive market.
We currently run a negative trade balance in ______ and a ______ trade balance in services.
Fill in the blank(s) with the appropriate word(s).
Although the U.S. economy stabilized and GDP increased as a result of the programs created by President Roosevelt during the First Hundred Days, unemployment remained high, prompting Roosevelt to create the civil works administration, works progress administration, which employed millions of americans as part of what overall domestic program?
The demand curve faced by a pure monopolist:
A. may be either more or less elastic than that faced by a single purely competitive firm.
B. is less elastic than that faced by a single purely competitive firm.
C. has the same elasticity as that faced by a single purely competitive firm.
D. is more elastic than that faced by a single purely competitive firm.