A) Given the information above, if full employment GDP were 2,300, would there be an inflationary gap or a recessionary gap? B) What two fiscal policy measures would you recommend to remove that gap?
A) recessionary gap; B) raise government spending, lower taxes
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A supply curve illustrates a(n) ____ relationship between ____ and ____
a. direct; price; supply b. direct; price; quantity demanded c. direct; price; quantity supplied d. inverse; price; quantity demanded
The circular flow diagram illustrates the flow of resources between households and government
a. True b. False Indicate whether the statement is true or false
Suppose the market consists of 3 individuals: Citizen A, Citizen B and Citizen C.
If the good shown on the graphs is a private good, then at a price of $4, market demand is ________ units.
A. 5 B. 30 C. 60 D. 10
Which of the following is not a characteristic of a perfectly competitive market?
A. There is a large number of small firms. B. Firms sell a homogeneous product. C. Firms can easily enter or exit the market. D. Firms are price makers, not price takers.