Using Figure 3 below, suppose that the economy was at Y3. This level of GDP would be considered:
A. inflationary.
B. recessionary.
C. a long run level of output.
D. a natural rate of output.
A. inflationary.
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Unemployment is referred to as a lagging indicator because
A) it tends to stay high for many months after output stops declining during a recession. B) reports on unemployment statistics tend to lag behind reports on inflation statistics. C) it takes time to collect information regarding unemployed individuals.. D) it indicates economic activities from the year before.
The holdout problem arises when unanimous approval among members of a group is required_____
a. for a Pareto efficient move to occur b. for a Pareto superior move to occur c. for government to decide to undertake the project d. for government to be able to levy the tax to fund the project
The poverty rate is a measure of the percentage of people whose incomes fall below
a. a relative level of income. b. an absolute level of income. c. the median income for a family of three. d. the bottom 20 percent of the income distribution.
Veronica deposited $1,000 into an account two years ago. The first year she earned 7 percent interest; the second year she earned 5 percent. How much money does Veronica have in her account today?
a. $1,133.31 b. $1,120.00 c. $1,123.50 d. None of the above are correct to the nearest cent.