Cyclical unemployment is equal to zero when:
A. actual GDP and potential GDP are equal.
B. there is no recessionary gap.
C. there is no expansionary gap.
D. frictional unemployment equals structural unemployment.
Answer: A
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Growth in physical capital depends most directly upon the
A) speed of population growth. B) amount of saving and investment. C) amount of government expenditures. D) number of firms in the nation. E) level of human capital.
Which of the following equations represents GDP for an open economy?
a. Y = C + I + G + NX b. NX = I - G c. I = Y - C + G + NX d. Y = C + I + G
It is the custom for paper mills located alongside the Layzee River to discharge waste products into the river. Operators of hydroelectric generating plants on the river find they must clean up the river's water before it flows through their equipment. The above situation is an example of:
A. an external economy. B. the exclusion principle. C. a spillover cost. D. a spillover benefit.
If you were a creditor you would prefer
A. deflation. B. disinflation. C. unanticipated inflation. D. anticipated inflation.