The gap that exists when equilibrium real GDP is less than full-employment real GDP is
A. an inflationary gap.
B. the short-run aggregate supply curve.
C. a recessionary gap.
D. money illusion.
Answer: C
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The substitution effect of a change in the price of cauliflower is the portion of the change in the quantity of cauliflower demanded that can be attributed to the change in the price of a substitute vegetable such as asparagus
Indicate whether the statement is true or false
Which of the following is an approach used by economists to calculate the value of a human life?
a. comparing the salaries of people who live in cities with more traffic lights to those who live in cities with fewer traffic lights b. comparing the wages of more risky occupations to less risky occupations c. comparing the costs of vehicles with safety features such as side-impact airbags to those without such safety features d. All of the above are correct.
Which of the following terms is used to refer to the ability of people to exercise authority over the resources they own?
a. natural rights b. property rights c. input control d. collective control
You win your state lottery. The lottery officials offer you the following options: you can accept annual payments of $50,000 for 20 years or receive an upfront payment of $700,000. Ignoring issues like mortality tables, taxes, etc.; and assuming the first payment is made immediately, what market interest rate would make it more attractive to take the upfront payment?
What will be an ideal response?