Which of the following is not true of an economic expansion?
a. The economy is overheated.
b. There is too much spending.
c. Production exceeds equilibrium output.
d. The aggregate expenditure line is too low to create an intersection at full-employment output.
e. Unemployment will be unusually low.
D
You might also like to view...
The lowest point on a perfectly competitive firm's short-run supply curve corresponds to the minimum point on its
A. AFC curve. B. MC curve. C. AVC curve. D. ATC curve.
Five hundred units of good x are currently bought and sold. The marginal buyer is willing to pay $40 for the 500th unit, and the cost to the marginal seller is $35 for the 500th unit. We know that
a. the equilibrium price of good x is somewhere between $35 and $40. b. the equilibrium quantity of good x exceeds 500 units. c. 500 units is not an efficient quantity of good x. d. All of the above are correct.
The cross-price elasticity of demand between bananas and apples is most likely:
A. positive. B. negative. C. zero. D. More information is needed to determine.
The responsiveness of the quantity demanded of one good to a change in the price of a different good is measured by the:
A. cross-price elasticity of demand. B. income elasticity of demand. C. price elasticity of supply. D. price elasticity of demand.