The amount by which actual output falls short of potential output is called _____
Fill in the blank(s) with the appropriate word(s).
a recessionary gap.
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Consider a game in which a player has a dominant strategy.
(i) If the game is played sequentially and the player moves first, will he necessarily choose his dominant strategy? Explain. (ii) If the game is played sequentially and the player moves second, will he necessarily choose his dominant strategy? Explain.
Which of the following best describes the influence of successful advertising on the market for aspirin?
A) The market demand curve shifts to the right, creating a shortage at the original equilibrium price. B) Individuals' demand curves shift to the right, but the market demand curve remains at its original position. C) The market supply curve shifts to the right, creating a surplus at the original equilibrium price. D) The market supply curve for aspirin shifts to the right, causing equilibrium price to decrease.
If the price of a good is equal to the equilibrium price,
a. there is a surplus and the price will rise. b. there is a surplus and the price will fall. c. there is a shortage and the price will rise. d. there is a shortage and the price will fall. e. the quantity demanded is equal to the quantity supplied and the price remains unchanged.
Exhibit 9-5 Demand and cost data for a monopolist Price Quantity TR MR TC Profit $10 1 10 10 4 9 2 8 8 3 12 7 4 16 6 5 20 5 6 24 4 7 28 3 8 32 2 9 36 1 10 40 By calculating the data provided in Exhibit 9-5, how much is the profit if the firm decides to produce 7 units?
A. 0. B. 24. C. 16. D. 12.