When an economy is producing at its potential level of output:
A. cyclical unemployment is not occurring.
B. structural unemployment is not occurring.
C. frictional unemployment is not occurring.
D. there is no unemployment.
A. cyclical unemployment is not occurring.
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Figure 19.1 shows the actual behavior of inventories. Based on the figure, in which month is the discrepancy between the actual level of inventories and the desired level of inventories likely to have been smallest?
A) March 2012 B) September 2009 C) March 2010 D) September 2010
If a 10% decrease in price for a good results in a 20% increase in quantity demanded, the price elasticity of demand is
a. 0.50. b. 1. c. 1.5. d. 2.
Madison has an income of $50, which she spends on Pizza (P) and soft drinks (S). Her marginal rate of substitution is MRSPS = S/P. The price of pizza (PP) is $5 and the price of soft drinks (PS) is $2.50. Finally, the formula for her indifference curves is given by S = 2U/P (a) Find Madison's uncompensated demand curve for pizza. (b) Find Madison's compensated demand curve for pizza
What will be an ideal response?
How does a recession impact the financial markets?
A. It increases stock prices. B. It increases loanable funds. C. It decreases loanable funds. D. It decreases risk.