Figure 10-3
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In Figure 10-3, both graphs (a) and (b) indicate that the economy is experiencing a(n)
A. recessionary gap of RE.
B. recessionary gap of RG.
C. inflationary gap of RG.
D. inflationary gap of RE.
Answer: D
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If good weather conditions result in a larger than normal crop of peaches, then the
A) equilibrium price of peaches rises, and the equilibrium quantity of peaches increases. B) equilibrium price of peaches falls, and the equilibrium quantity of peaches increases. C) demand curve for peaches shifts leftward. D) increase in the supply of peaches induces a greater demand for peaches, so that the equilibrium price rises and the equilibrium quantity increases. E) equilibrium price of peaches falls, and the equilibrium quantity of peaches decreases.
From the economic point of view, "joint costs" are problematic because
A) they can only be determined in markets for illicit drugs. B) there is no way to correctly allocate joint costs. C) they can be measured only by the most sophisticated accounting techniques. D) there is no way to discuss the concept meaningfully.
Suppose an economy has some inflation. Then, after a base year, the value of real GDP will
A) be less than nominal GDP. B) not be different from nominal GDP. C) be greater than nominal GDP. D) will be approximately half the value of nominal GDP.
A p-value refers to the probability of obtaining the result that you find in the sample data if the null hypothesis is not true.
Answer the following statement true (T) or false (F)