If aggregate demand turns out to be lower than anticipated, then the short-run equilibrium occurs at an output level ________ potential output. This difference between short-run equilibrium output and potential output is called a(n) ________ gap
a. below; expansionary
b. below; recessionary
c. above; expansionary
d. above; recessionary
b
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The Congressional Budget Office, which is staffed by economists, provides Congress with independent evaluations of policy proposals
a. True b. False Indicate whether the statement is true or false
The following table provides nominal exchange rates for the U.S. dollar.CountryForeign currency/dollarDollar/foreign currencySwitzerland(franc)1.730.578Brazil(real)1.821.549Based on these data, the nominal exchange rate equals approximately ________ reals per Swiss franc or, equivalently, ________ Swiss francs per real.
A. 3.551; 0.282 B. 0.950; 1.053 C. 0.282; 3.551 D. 1.053; 0.950
The horizontal intercept of the budget line is:
A. M/PY. B. -PX/PY. C. M/PX. D. PYY.
Contractionary fiscal policy would tend to make a budget deficit become:
A. Bigger B. Smaller C. A trade deficit D. A trade surplus