In September 2012 the U.S. unemployment rate was 7.8 percent while the natural unemployment rate was 6 percent. The U.S. economy
A) had a negative output gap.
B) had a positive output gap.
C) had an output gap of zero.
D) was at full employment.
A
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Refer to Tax Problem. If the government imposes a $10 per unit consumption tax, then how much consumer surplus will there be after the tax.
Consider a perfectly competitive market were demand is Q = 100 - P and Supply is Q = P - 10. a. 600. b. 800. c. 1000. d. 1600.
Omar and John can fix computers or write computer programs. The table above shows the number of computers they can fix and the lines of code they can write in a day
a. Who, if anyone, has the absolute advantage? b. Who has the comparative advantage in fixing computers? Why? c. Who has the comparative advantage in writing programs? Why?
From 1789 to 1838, state banks
(a) served as financial intermediations and paid out paper money to borrowers. (b) were corporations. (c) engaged in agricultural activities. (d) established demand deposits against which checks could be written by the borrower.
Refer to the following figure. The price of capital is $50 per unit:
Which of the following combinations of capital and labor lies on the expansion path?
A. 130K, 175L B. 130K, 200L C. 110K, 120L D. 60K, 120L