The gap in GDP between the United States and Europe can be explained by the fact that
A) income taxes are higher in the United States.
B) prices are higher in the United States.
C) equilibrium employment is higher in Europe.
D) the Okun Gap is larger in the United States.
E) U.S. labor is more productive than European labor.
E
You might also like to view...
Refer to Figure 26-12. In the dynamic AD-AS model, if the economy is at point A in year 1 and is expected to go to point B in year 2, the Federal Reserve would most likely
A) not change interest rates. B) increase the inflation rate. C) increase interest rates. D) decrease interest rates.
Price elasticity of supply is represented as ____________________.
a. monetary currency b. a percentage c. a fraction d. a ratio
Explain why the Fisher equation is not highly accurate at high rates of inflation. Use an example.
What will be an ideal response?
Suppose that a firm is currently producing 500 units of output. At this level of output, TVC = $10,000 and TFC = $25,000. What is the firms ATC?
A. $100 B. $50 C. $70 D. $20