When an economy is experiencing a negative output gap, it means that the:
A. actual output is less than their potential output.
B. actual output is more than their potential output.
C. price level is rising.
D. price level is falling.
A. actual output is less than their potential output.
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Nominal GDP measures the value of all final goods and services at base-year prices
Indicate whether the statement is true or false
Which of the following is the best example of "how goods and services should be produced?"
A) complying with the technical specifications in the production of an aircraft B) the production of jet aircraft for the air force or for a commercial airline C) the use of additional workers versus the use of machines in the production of goods D) the production of a new manufacturing facility
Which of the following limits the ability of the current system of transfer programs to increase the incomes of the able-bodied poor?
a. The high implicit marginal tax rates that accompany the current income transfer programs reduce the incentive of the poor to earn. b. The transfer programs encourage the poor to marry and form dual-earner families. c. The transfer programs tend to increase the wages that employers are required by law to pay for low-skill labor. d. The transfer programs reduce the likelihood of single-parent families.
Each member of a cartel
a. faces a temptation to cheat on the agreement because lowering its price slightly below the established price will usually increase the firm's sales and profit. b. faces a temptation to cheat on the agreement because raising its price slightly above the established price will usually increase the firm's sales and profit. c. has no temptation to cheat on the agreement because lowering its price slightly below the established price will usually have no impact on the firm's sales and profit. d. has no temptation to cheat on the agreement because raising its price slightly above the established price will usually decrease the firm's sales and profit. e. has no temptation to cheat on the agreement because lowering its price slightly below the established price will usually lower the firm's sales and profit.