When the economy is producing Real GDP at the level at which the LRAS curve intersects the AD curve the economy is
A) in a recessionary gap.
B) in long-run equilibrium.
C) in an inflationary gap.
D) operating at less than full-employment output.
B
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The value of real GDP in the current year equals
A) the value of current-year output in prices of the base year. B) the value of current-year output in prices of the current year. C) the value of base-year output in prices of the base year. D) the value of base-year output in prices of the current year.
What is the present value of $5,000 to be received in one year if the current market interest rate is 6.0%?
a. $3,125 b. $4,717 c. $4,923 d. $5,300
A monopoly is a sole ___________, and a monopsonist is a sole ___________
a. buyer in a goods market; seller in a goods market b. seller in a goods market; seller in a labor market c. buyer in a goods market; seller in a labor market d. seller in a goods market; buyer in a labor market e. seller in a labor market; buyer in a goods market
Over time, GDP may increase as the result of either (i) expansion in the quantities of goods produced or (ii) higher prices. Which of the following is true?
a. (i) will generally increase living standards, but (ii) will not. b. (ii) will generally increase living standards, but (i) will not. c. Both (i) and (ii) will generally increase living standards. d. Neither (i) nor (ii) will generally increase living standards.