The GDP gap is the difference between:
a. full-employment real GDP and real GDP chain price index.
b. unemployment rate and real GDP chain price index.
c. actual real GDP and full-employment real GDP.
d. frictional unemployment and actual real GDP.
c
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If society wants aggregate demand to increase without changes in the price level, then there must be
A) an increase in autonomous spending combined with an increase in the marginal propensity to save. B) a gap between full employment and the current level of real GDP and an increase in autonomous spending. C) an increase in autonomous saving so that autonomous investment spending can increase. D) an increase in autonomous spending and a horizontal short-run aggregate supply curve.
The more time gasoline consumers have to adjust to a price change,
A) the lower their price elasticity of demand. B) the greater their price elasticity of demand. C) the less sensitive they will be to the price change. D) the less time they will have to seek out substitutes for gasoline.
One reason the U.S. government is sensitive to demands by the elderly is that the elderly have higher voter participation rates than members of other age groups
a. True b. False
Refer to Scenario 3.1 below to answer the question(s) that follow.SCENARIO 3.1-Streaming movies and movies shown in theaters are substitutes. -Streaming movies and OLED TVs are complements. -OLED TVs and movies shown in theaters are normal goods. -People watch streaming movies more often in the winter than in the summer.Refer to Scenario 3.1. The number of sites that stream movies is reduced by 25%, reducing the number of streaming movies available. Which of the following would occur?
A. The price of streaming movies and the price of movie tickets would decrease, but the price of OLED TVs would increase. B. The price of streaming movies and the price of movie tickets would increase, but the price of OLED TVs would decrease. C. The price of streaming movies would increase, but the price of OLED TVs and movie tickets would be unaffected. D. The price of streaming movies would increase, and the price of OLED TVs and movie tickets would decrease.