Which of the following if true would suggest that an expansionary gap exists in an economy?
a. Rapid inflation during a period when plant capacity utilization is below average
b. A steady price level coupled with a 5 percent unemployment rate
c. An unemployment rate below its natural rate and an unexpected increase in the consumer price index
d. Sluggish growth in the rate of inflation and an exceptional increase in the Dow Jones average
e. A modest increase in the number of new unemployment claims and a lower than expected price level
c
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An increase in aggregate demand is shown by a
A) rightward shift of the AD curve. B) movement upward along the AD curve. C) movement downward along the AD curve. D) leftward shift of the AD curve.
During the Great Depression, the rate of unemployment in the United States reached a high of
a. 10 percent. b. 15 percent. c. 20 percent. d. 25 percent.
Which of the following statements about a firm's short-run variable costs is correct?
A. They are always a greater expense than are fixed costs. B. They include the costs of plant and equipment. C. They increase as the level of output decreases. D. They typically include the cost of workers' wages.
If the price level was 100 in 2017 and 102 in 2018, the inflation rate was
A. 102%. B. 0.2%. C. 2%. D. 20%.