The economy is in a recessionary gap, there is incomplete crowding out, and government implements expansionary fiscal policy. It follows that
A) Real GDP will fall.
B) the AD curve will shift to the right.
C) the price level will fall.
D) the recessionary gap will necessarily be completely eliminated.
E) b and d
B
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Use the following graph for a competitive market to answer the question below.
A black market where the price is $2.00 could result from a price
A. ceiling set at $2.50. B. floor set at $2.00. C. floor set at $1.50. D. ceiling set at $1.50.
Specialization and trade do not allow individuals, firms, or even nations to acquire goods that lie beyond their production capabilities
a. True b. False Indicate whether the statement is true or false
If a firm's short-run total cost curve lies above its total revenue curve at all output levels, the firm should
a. always shut down in the short run b. always operate in the short run c. operate in the short run if the maximum operating loss is less than its total fixed cost d. operate in the short run if the minimum operating loss is less than its total fixed cost e. operate in the short run if the average operating loss is less than its total fixed cost
National income is the sum of
A. wages and profits. B. wages, interest, profits, and rent. C. interest and rent. D. wages, transfer payments, and tax revenues.