If potential GDP for the third quarter of 2012 = $20.4 billion, and the deviation from potential GDP for the third quarter of 2012 = -$1.6 billion, then the output gap was
A) -7.8%.
B) -12.8%.
C) -18.8%.
D) -32.6%.
A
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The combined effect (both income and substitution) of a wage increase is that
A) if the substitution effect outweighs the income effect, the labor supply curve slopes upward, but if the income effect outweighs the substitution effect, the labor supply curve is backward bending. B) the income effect always dominates, leading to less work at a higher wage. C) if the substitution effect outweighs the income effect, the labor supply curve is backward bending, but if the income effect outweighs the substitution effect, the labor supply curve slopes upward. D) the substitution effect always dominates, leading to more work at a higher wage.
Moving downward along an indifference curve causes a(n)
A. reduction in the total utility a consumer receives. B. loss in the marginal utility of one good but an equal increase in the marginal utility of the other good. C. increase in the marginal utility of both goods. D. decrease in the price of one good and an increase in the price of the other good.
During the financial crisis of 2008, the unemployment rate
A. fell by less than expected. B. barely changed. C. fell dramatically. D. rose dramatically.
Convergence of output per capita across countries has come from
A) a convergence of saving rates. B) a convergence of the accumulation of capital. C) higher technological progress from the countries that started behind. D) all of the above