When the actual GDP equals the full-employment level of GDP, the
a. economy is in long-run equilibrium.
b. price level must be rising.
c. expected inflation must be zero.
d. aggregate supply curve is not constrained by the scarcity of resources.
A
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If domestic investment is growing faster than domestic savings, then net capital flows must be
A) shrinking. B) positive. C) negative. D) growing.
In the above figure, at the profit-maximizing rate of production for the perfectly competitive firm total revenue is
A) $100. B) $70. C) $30. D) $130.
Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and the nominal value of the domestic currency in the context of the Three-Sector-Model?
a. There is not enough information to determine what happens to these two macroeconomic variables. b. The GDP Price Index rises, and nominal value of the domestic currency rises. c. The GDP Price Index falls, and nominal value of the domestic currency rises. d. The GDP Price Index rises, and nominal value of the domestic currency remains the same. e. The GDP Price Index rises, and nominal value of the domestic currency falls.
From the following, identify a reason for increased income inequalities in the U.S.
A. Increase in the profitability of capital markets B. Increase in labor-intensive manufacturing jobs C. Increase in the inheritance tax rates D. Increase in the tax rates on carried interests