Within the framework of the Keynesian Cross model, if an economy is operating at a real GDP less than full-employment real GDP:
A. a recessionary gap exists
B. an inflationary gap exists
C. aggregate expenditures will rise
D. the general level of prices will rise
Answer: A
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Which of the following are important for countries to promote with property rights and incentives if economic growth is to occur? i. specialization ii. saving and investment iii. increases in human capital iv. discovery of new technology
A) i, ii, iii and iv. B) ii and iii. C) iii and iv. D) ii and iv. E) i, ii and iv only.
Suppose the equilibrium price of a physical examination ("physical") by a doctor is $200, and the government imposes a price ceiling of $150 per physical. As a result of the price ceiling,
a. the demand curve for physicals shifts to the right. b. the supply curve for physicals shifts to the left. c. the quantity demanded of physicals increases and the quantity supplied of physicals decreases. d. the number of physicals performed will increase.
Refer to the information provided in Figure 23.3 below to answer the question(s) that follow.
Figure 23.3Refer to Figure 23.3. Aggregate saving is $240 if aggregate income is
A. $300. B. $500. C. $800. D. $1,000.
Refer to the graph below for a monopolist in short-run equilibrium. This monopolist has total cost equal to area:
A. CADF
B. 0ADQ
C. ADFC
D. 0CFQ