Actual GDP will be below potential GDP:
a. when the economy is at full employment.
b. during an economic boom.
c. when resources are fully utilized.
d. during a recession.
d
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Fiscal policy includes all of the following EXCEPT
A) policies that influence the rate of growth of the quantity of money in circulation. B) changing taxes. C) changing government spending. D) policies that influence aggregate demand.
The invisible hand of the marketplace acts to allocate resources efficiently, but it does not necessarily ensure that resources are allocated fairly
a. True b. False Indicate whether the statement is true or false
Law of Supply
What will be an ideal response?
When moving along a market demand curve, the prices of related goods are assumed to be constant. With an aggregate demand curve,
A. the assumption is meaningless because we are using a market basket for all goods and services. B. the prices of related goods have an inverse relationship. C. all goods are assumed to have the same price. D. the same assumption holds true.