If an economy's actual GDP exceeds its potential GDP, _____
a. wages and prices must fall
b. self-correcting forces will shift the SRAS curve to the left
c. self-correcting forces will shift the AD curve to the left
d. inflation will occur when AD shifts to the left
e. unemployment is likely to be unusually high
b
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The tax incidence on buyers is higher if ________
A) the buyers and sellers of a good are equally sensitive to price changes B) the elasticity of the market demand curve is higher than the elasticity of the market supply curve C) the elasticity of the market supply curve is higher than the elasticity of the market demand curve D) the number of sellers in a market is larger than the number of buyers
In 2015, the U.S. gross national debt was _____
a. about $1 million b. about $1 billion c. $1 trillion d. $3 trillion e. about $18 trillion
Keynesians identify three principal motives for demanding money. They are the
a. transactions motive, precautionary motive, and liquidity motive b. transactions motive, precautionary motive, and convertibility motive c. transactions motive, speculative motive, and volatility motive d. transactions motive, speculative motive, and liquidity motive e. transactions motive, speculative motive, and precautionary motive
Marginal cost
a. equals the slope of the total cost curve. b. is calculated as DTC/DQ. c. is the increase in total cost resulting from a one-unit increase in output. d. All of the above are correct.