Refer to the above figure. If the economy is currently operating at point C, then there is
A) a stable long-run equilibrium situation.
B) a recessionary gap.
C) an inflationary gap.
D) unemployment.
C
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Suppose the government introduced a ceiling on lawyers' fees
How would the amount of work done by lawyers, the consumer surplus of people who hire lawyers, and the producer surplus of law firms change? Would this fee ceiling result in an efficient and fair use of resources? Why or why not?
According to its advocates, what are four advantages product differentiation and advertising provide to consumers?
What will be an ideal response?
The economic problem with Medicare financing is that
A) there is a built-in incentive to provide fewer services by doctors. B) there is a built-in incentive to travel to Canada to receive medical services. C) the cost of providing services is falling annually. D) there is a built-in incentive to consume more services.
If the exchange rate between the U.S. dollar and the Japanese yen were such that one U.S. dollar equals 100 yen, what would be the price in dollars of a Japanese automobile that cost 2,000,000 yen?
a. $100 b. $20,000 c. $120,000 d. $2,000,000