In Figure 1 above if the economy were at Y1 then we would expect there to be:
A. no change in production since PAE = actual output.
B. an increase in production since PAE < actual output.
C. an increase in production since PAE > actual output.
D. a decrease in production since PAE > actual output.
Answer: C
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Which group is responsible for the policy decision of changing the money supply?
A. Federal Open Market Committee B. Federal Advisory Council C. Office of Management and Budget D. Thrift Advisory Council
Whether one views the discretionary policies of the 1960s and 1970s as destabilizing or believes the economy would have been less stable without these policies, most economists agree that
A) stabilization policies proved more difficult in practice than many economists had expected. B) stabilization policies proved not to be inflationary. C) the nondiscretionary policymakers were right in believing that the private economy is inherently stable. D) the discretionary policymakers were right in believing that the private economy is inherently stable.
The above figure shows the market for apples. If a consumer group convinces the government to set a maximum price of $2 per pound, then
A) 300 pounds of apples will be sold at $2. B) no apples will be supplied. C) no apples will be demanded. D) there will be a shortage of 100 pounds of apples.
The share of the labor force that was unionized increased from approximately 10 percent in 1930 to more than 30 percent in 1955 . During these 25 years, the share of national income allocated to labor (in contrast to capital)
a. remained virtually constant. b. increased approximately 10 percent. c. increased between 15 and 25 percent. d. increased 17.6 percent.