An expansion occurs when ________, when ________, or when both of these occur.
A. potential output grows slowly; actual output equals potential output
B. potential output grows slowly; actual output rises above potential output
C. potential output grows rapidly; actual output equals potential output
D. potential output grows rapidly; actual output rises above potential output.
Answer: D
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In the above figure, which demand curve illustrates perfectly elastic demand?
A) G B) H C) I D) J
Developing countries have often attempted to establish cartels so as to counter the actual or perceived inexorable downward push on the prices of their exported commodities. OPEC is the best well known of these
How are such cartels expected to help the developing countries? At times importing countries profess support for such schemes. Can you think of any logical basis for such support? How are cartels like monopolies, and how are they different from monopolies. Why is there a presupposition among economists that such schemes are not likely to succeed in the long run?
Economics is primarily the study of
a. how to make money in the stock market. b. how to find lower cost methods of production. c. the choices we must make among alternatives because of scarcity. d. the proper form of industrial structure for the United States.
If a demand curve goes through the point P = $6 and Qd = 400, then
A. $6 is the highest price consumers will pay for 400 units. B. $6 is the lowest price consumers can be charged to induce them to buy 400 units. C. 400 units are the most consumers will buy if price is $6. D. consumers will buy more than 400 if price is $6. E. both a and c