In Macroland potential GDP equals $20 billion and real GDP equals $19.2 billion. Macroland has a(n) ________ gap equal to ________ percent of potential GDP.
A. expansionary; 4
B. expansionary; 8
C. recessionary; ?8
D. recessionary; ?4
Answer: D
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If technological change increases the profitability of new investments for firms, then the ________ curve for loanable funds will shift to the ________
A) demand; right B) demand; left C) supply; right D) supply; left
Refer to Scenario 15.5. What is the total amount Catherine will lose in earnings by being a smoker, if she works now and continues until age 65?
A) $1500 B) $67,500 C) $90,000 D) $97,500 E) $120,000
The entrepreneur
a. serves as a liaison between management and labor b. owns all of the factors of production c. allocates the risk and uncertainties of enterprise to others d. assumes the risk and uncertainties of enterprise e. earns more than labor
Assume that the central bank increases the reserve requirement. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and net nonreserve-related international borrowing/lending in the context of the Three-Sector-Model?
a. The real risk-free interest rate rises, and net nonreserve-related international borrowing/lending becomes more positive (or less negative). b. The real risk-free interest rate falls, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). c. The real risk-free interest rate rises, and net nonreserve-related international borrowing/lending becomes more negative (or less positive). d. The real risk-free interest rate and net nonreserve-related international borrowing/lending remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.