An inflationary expenditure gap is the amount by which:
A. equilibrium GDP falls short of the full-employment GDP.
B. aggregate expenditures exceed any given level of GDP.
C. saving exceeds investment at the full-employment GDP.
D. aggregate expenditures exceed the full-employment level of GDP.
D. aggregate expenditures exceed the full-employment level of GDP.
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Refer to Figure 15-7. Suppose the economy is in a recession and no policy is pursued. Using the static AD-AS model in the figure above, this situation would be depicted as a movement from
A) C to D. B) A to B. C) C to B. D) A to E. E) B to A.
You could borrow $2,000 today from Bank A and repay the loan, with interest, by paying Bank A $2,125 one year from today. Or, you could borrow X dollars today from Bank B and repay the loan, with interest, by paying Bank B $2,200 two years from today. In order for the same interest rate to apply to the two loans, X =
a. $1,853.55. b. $1,898.70. c. $1,948.79. d. $2,012.22.
Which of the following is not true for a monopoly?
A.) The demand curve for the monopoly and the market are the same. B.) It has no direct competitors. C.) It can use its market power to charge higher prices than a competitive firm. D.) It is a price taker.
With a call option, the option holder:
A. can buy or sell, it is their option. B. can buy the asset but only after the date specified. C. has the right to buy the asset. D. has the right to sell the asset.