Starting from potential output, if consumer confidence increases and consumers decide to spend more, then this will generate a(n) ________ gap and inflation will ________.
A. recessionary; increase
B. expansionary; increase
C. recessionary; decrease
D. expansionary; decrease
Answer: B
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The American economy is ________ economy in the world today.
A. the largest and the fastest growing B. neither the largest nor the fastest growing C. the largest, but not the fastest growing D. the fastest growing, but not the largest
Refer to Figure 16-9. Given that the economy has moved from point A to point B in the graph above, which of the following would be the appropriate fiscal policy to achieve potential GDP?
A) decrease the money supply B) increase interest rates C) increase government spending D) increase taxes
_________________ means that each unit of saved time is more valuable than the last unit
a. Acceleration effect b. Assimilation c. Separation d. Acculturation
?The table given below shows the output supplied by a firm and its total cost of production. If the market price is $8.50, the profit-maximizing output and profit are _____. Quantity of output. Total Cost ($) 0 50 10 85 20 150 30 220 40 305 50 455
a. ?40 units and $0, respectively b. ?40 units and $35, respectively c. ?50 units and $30, respectively d. ?0 units and ?$50, respectively e. ?30 units and $25, respectively