The structural deficit is determined by established expenditure-transfer policies and tax rates and is independent of the current level of GDP
a. True
b. False
Indicate whether the statement is true or false
True
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Picture an economy that is in general equilibrium. What would happen if the natural rate of unemployment were to experience a decrease?
A) according to the Phillips curve, the ensuing negative unemployment gap would exert inflationary pressures B) according to Okun's Law, the ensuing negative unemployment gap would be consistent with a positive output gap C) according to the AD-AS framework, the LRAS curve would shift to the right and the ensuing output gap would have to be closed by subsequent rightward shifts in the AS curve to a lower equilibrium level of inflation D) all of the above E) none of the above
The quantity of gasoline demanded will respond more to a change in price over three weeks than over three years
a. True b. False Indicate whether the statement is true or false
Suppose you sell a kayak for $600, but you were willing to sell it for $450 . The buyer was willing to pay $650 . The total surplus is $200
a. True b. False Indicate whether the statement is true or false
Suppose the total market value of all the final goods and services produced in the country of Cannedada was $4 billion in 2008 (measured in 2008 prices) and $5 billion in 2009 (measured in 2009 prices). Which of the following statements is definitely correct?
A. Average price levels increased in Cannedada between 2008 and 2009. B. Production increased in Cannedada between 2008 and 2009. C. Nominal GDP decreased in Cannedada between 2008 and 2009. D. The change in real GDP cannot be determined without more information.