The amount by which equilibrium real GDP exceeds full-employment GDP is known as
A. stagflation.
B. employment.
C. a recessionary gap.
D. an inflationary gap.
Answer: D
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If you have a bond that pays a lump sum at the time of maturity, it is
A) called a zero-coupon bond. B) worth more than a bond with coupon payments. C) riskier than a bond with coupon payments. D) a safer investment than a perpetuity.
If the price of bread is zero and the price of cheese is positive, then the budget constraint between bread (on the horizontal axis) and cheese (on the vertical axis) would
a. be vertical. b. coincide with the vertical axis. c. coincide with the horizontal axis. d. be horizontal.
Which of the following is least likely to affect the supply of labor in any particular industry?
A. The size of the available working population B. The nonmonetary attractiveness of the job C. The amount of ability and training necessary to enter the job D. The wages offered in the industry
A year-long drought that destroys most wheat crops for the season would shift the:
A. short-run aggregate supply curve only. B. aggregate demand curve only. C. aggregate demand curve, and the short-run aggregate supply curve would shift in response. D. short-run aggregate supply curve and the long-run aggregate supply curve.