A recessionary gap can be defined as:
a. an economy that is operating above its full-employment capacity.
b. an economy that is operating at full-employment capacity.
c. the amount by which aggregate expenditures exceeds the aggregate expenditures level needed to generate equilibrium real GDP at full employment without inflation
d. the amount by which aggregate expenditures falls short of the level needed to generate equilibrium real GDP at full employment without inflation.
e. the easiest way out of a depression.
d
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Which of the following is NOT illustrated by a production possibilities frontier?
A) scarcity B) opportunity cost C) necessity for choice D) who gets the goods
Which of the following ways of distributing the laptops would be more efficient? (Check all that apply.)
A. Using a first-come, first-served rule. B. Auctioning off the laptops to the highest bidders. C. Using a random lottery to decide who gets the laptops. D. Using flexible prices, so those who value the laptop more would pay more for it.
Which of the following institutions has the responsibility for producing the coins that are distributed in the United States?
A. the U.S. Treasury Department B. the Federal Reserve System C. the Office of the Comptroller of the Currency D. the U.S. Mint
Refer to Figure 3.4. This is an example of
A) an assurance game. B) a pure coordination game. C) a battle of the sexes game. D) a chicken game.