Refer to the information provided in Figure 26.1 below to answer the question(s) that follow.
Figure 26.1Refer to Figure 26.1. At aggregate output levels below $500 billion, this economy is most likely experiencing
A. a boom.
B. excess capacity.
C. rapid increases in the growth rate of the money supply.
D. excess demand.
Answer: B
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Chain-weighted price indices are constructed such that
A) all years' levels of GDP are directly related to a base year level of GDP. B) prices of one good can be directly compared with prices of other goods. C) prices in different years can be directly compared with one another. D) prices in different economies can be directly compared with one another.
Large projects that involve purchasing land from many landowners may not succeed due to the numerous expenses of negotiating so many different deals. These expenses, such as attorney's fees and bank fees, are examples of
A) transactions costs. B) eminent domain. C) the holdout problem. D) negative externalities.
If the U.S. government removes tariffs it had placed on imports from countries that have been accused of deliberately undervaluing their currencies, the price of these imports will ________ and the demand for the undervalued currency will ________
A) fall; rise B) rise; rise C) rise; fall D) fall; fall
Which of the following is a way in which firms can achieve economies of scale?
a. Increasing the scale of operation b. Product differentiation c. Producing different products in the same plant d. Using more workers than are actually needed