When no output gap exists actual output ________ potential output and the rate of inflation will tend to ________.
A. exceeds; increase
B. equals; remain the same
C. is less than; decrease
D. exceeds; decrease
Answer: B
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Since people respond to incentives, we would expect that, if the average salary of accountants increases by 50% while the average salary of teachers increases by 20%, then
a.fewer students will take degree courses in accounting and more will take education courses. b.fewer students will take degree courses in education and more will take accounting courses. c.fewer students will attend university. d.none of these answers.
Which of the following statements best describes the potential gains from trade?
a. The potential for gains from trade may be especially low among the smaller and lower income countries of the world. b. The potential for gains from trade may be especially high among the smaller and lower income countries of the world. c. The potential for gains from trade may be especially high among the medium and larger income countries of the world. d. The potential for gains from trade may be especially high among the smaller and medium income countries of the world.
Black men earn an average of 21% less than white men. A labor economist who wants to investigate whether the differences in earnings indicate labor-market discrimination against black men should consider whether black and white men have similar (i) years of work experience. (ii) years of education. (iii) occupations. (iv) quality of education
a. (i) and (ii) only b. (iii) and (iv) only c. (ii) only d. (i), (ii), (iii), and (iv)
An advance in technology commonly refers to the ability to produce
A) the same output with a smaller quantity of resources. B) more output with a fixed quantity of resources. C) more output with a greater quantity of resources. D) both a and b E) both b and c