What is the current equilibrium price level and real GDP for the economy illustrated in the figure above? Does this economy have an inflationary gap, a recessionary gap, or neither?
As it adjusts toward full employment, which curve shifts? What is the equilibrium real GDP and price level that the economy will ultimately reach?
The equilibrium is where the aggregate demand and aggregate supply curves intersect. Thus the equilibrium price level is 110 and equilibrium real GDP is $16.5 trillion. Real GDP exceeds potential GDP, so the economy has an inflationary ga
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If firms in a monopolistically competitive industry are making an economic profit, then definitely there is
A) a leftward shift in each firm's demand curve as new firms enter the market. B) a rightward shift in each firm's marginal revenue curve as new firms enter the market. C) an upward shift in each firm's cost curves as new firms enter the market. D) All of the above answers are correct.
College graduation rates and college attendance rates are equally strongly correlated with family income
Indicate whether the statement is true or false
Consumption spending is part of __________ and the largest component of consumption spending is for ____________
a. GDP; services b. national income; durable goods c. national income; nondurable goods d. GDP; housing e. GDP; food
The rank condition for identification of a structural equation states that the first equation in a two-equation simultaneous equations model is identified if, and only if:
A. the first equation contains at least one exogenous variable (with a nonzero coefficient) that is excluded from the second equation. B. the first equation contains at least two exogenous variables (with a nonzero coefficient) that are excluded from the second equation. C. the second equation contains at least one exogenous variable (with a nonzero coefficient) that is excluded from the first equation. D. the second equation contains at least two exogenous variables (with a nonzero coefficient) that are excluded from the first equation.