Starting from potential output, if consumer confidence decreases and consumers decide to spend less, then this will generate a(n) ________ gap and inflation will ________.
A. expansionary; decrease
B. recessionary; decrease
C. recessionary; increase
D. expansionary; increase
Answer: B
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The main policy designer of the Federal Reserve system is the
A) 12 district banks. B) President and Congress. C) Federal Open Market Committee. D) Council of Economic Advisors.
Calculate the price elasticity of demand for gasoline implied by what most studies have found
What will be an ideal response?
Answer the following statement(s) true (T) or false (F)
1. A sandwich is an example of a club good. 2. Asymmetric information means both parties in a transaction share the same knowledge. 3. Used car sellers are at an advantage over buyers. 4. In adverse selection, one party takes advantage of knowing more than the other. 5. When one party in a sale is dishonest with the other, it is called moral hazard.
What percentage of the world's population subsists on incomes of less than $3 a day?
A. 40 percent. B. 60 percent. C. 70 percent. D. 50 percent.