Refer to the diagram. If aggregate supply is AS 1 and aggregate demand is AD 0 , then:
A. at any price level above G a shortage of real output would occur.
B. F represents a price level that would result in a surplus of real output of AC.
C. a surplus of real output of GH would occur.
D. F represents a price level that would result in a shortage of real output of AC.
D. F represents a price level that would result in a shortage of real output of AC.
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When money prices are used to facilitate comparisons of value, money is said to function as a
A) unit of account. B) medium of exchange. C) store of value. D) payments-system ruler.
After 1979 there was an upsurge in labor productivity growth in the U.S. ________ sector, mainly coming from the ________ industry
A) manufacturing, computer B) manufacturing, machine tool C) nonmanufacturing, edible oil D) nonmanufacturing, financial services E) nonmanufacturing, book publishing
An outside lag is the time period it takes economists to formulate a stabilization policy.
Answer the following statement true (T) or false (F)
Requiring a large net worth on the part of an applicant is one way lenders treat the problem of:
A. adverse selection. B. moral hazard. C. free-riders. D. the Lemons market.