Figure 9-1
?
In Figure 9-1, the economy is
A. experiencing an inflationary gap, shown by the horizontal distance EB.
B. at full employment without inflation.
C. experiencing a recessionary gap, shown by the horizontal distance EB.
D. experiencing a recessionary gap, shown by the distance between EF.
Answer: C
You might also like to view...
The Federal Reserve econometric model estimates that a 1 percent increase in government spending, with the money supply increased to hold the interest rate constant, will
A) increase real GDP by 3 percent in 3 years. B) increase real GDP by 3 percent in 4 years. C) increase real GDP by 1 percent 2 years. D) have no effect on real GDP after 3 years.
If the simplified technology costs $2 million to develop, what is the expected gain from developing the voice activated software
a. $5million b. $6million c. $7million d. $10million
What does the Herfindahl-Hirschman Index value near zero imply about the market?
A. Monopoly B. Perfect competition C. Monopolistic competition D. Oligopoly
Which of the following statements is not correct?
a. Based on studies of human decision making, most people value fairness. b. Based on studies of human decision making, some people's preference are inconsistent over time. c. Government intervention is the best remedy for the problems caused by asymmetric information. d. Advertising can be an example of a company signaling the quality of its products.