Suppose the AD curve and the SRAS curve intersect to the right of the LRAS curve. Which of the following is true?
A) The economy is in a recessionary gap.
B) The economy is in an inflationary gap.
C) The economy is in a long-run equilibrium.
D) This situation is actually impossible.
B
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Advocates of the New Growth Theory claim that they have improved upon the neoclassical model by
a. focusing on the rate of investment, rather than the amount of investment b. adding population growth to the list of key variables c. assuming that knowledge obtained in one country would be easily available to those in othercountries d. making technological change a part of the model, rather than something brought in from theoutside e. none of the above
According to the above table, the four-firm concentration ratio of this industry is
A) 69.2 percent. B) 35.1 percent. C) 66.7 percent. D) 67.5 percent.
Suppose an economist tests the theory that when the price of leather increases, fewer pairs of shoes are produced. He observes more shoes being produced when the price of leather increases. At the same time, a new production technology allowed for more shoes to be produced in less time. He has
A. has confused association and causation. B. cannot test his theory because his observations violate the ceteris paribus assumption. C. used normative economics to answer a positive question. D. built a model with too many variables.
The AVC curve is curve
A. W.
B. X.
C. Y.
D. Z.