A recessionary gap exists when:
A. output exceeds aggregate demand.
B. actual output exceeds potential output.
C. aggregate demand exceeds output.
D. potential output exceeds actual output.
Answer: D
You might also like to view...
In recent years, Taiwan has experienced increases in savings and investment. As a result of the higher investment and saving, we expect
i. increases in physical capital. ii. increases in the inflation rate. iii. advances in technology. A) i, ii and iii B) ii and iii C) ii only D) i and iii E) i and ii
When the price of oranges increases from $4 to $6 per bag, the quantity demanded of oranges decreases from 800 bags to 700 bags. The price elasticity of demand over this price range is equal to
A) 3. B) 3/7 or 0.4286. C) 1/3 or 0.3333. D) 1/4 or 0.25.
The real internal rate of return on a college education is about
A) 0%. B) 2.5%. C) 6.9%. D) 15%.
What would the Nash equilibrium be in this sequential game?
a. Enter, fight b. Enter, Accommodate c. Do not enter, Fight d. Do not enter, Accommodate