One In the News article is titled "CBO's Flawed Forecasts." According to the text, the CBO's forecasts typically miss the actual budget balance in the fifth year by
A. 4 percent of GDP.
B. 2 percent of GDP.
C. 1 percent of GDP.
D. 3 percent of GDP.
Answer: D
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The series of ups and downs the economy tends to move in is called
A) the business cycle. B) a recession. C) a depression. D) economic growth.
Which statement below does not describe a demand curve that is unit elastic?
a. The percentage change in quantity demanded equals the percentage change in price. b. An increase in price will not change total revenue. c. The price elasticity of demand equals one. d. A change in price will not change quantity demanded. e. A decrease in price will not change total revenue.
If the government grants a patent to Firm A for the production of Good A, then the market for Good A will be: a. an oligopoly
b. a monopoly. c. perfectly competitive. d. a duopoly.
A recessionary output gap is defined to be when:
A. equilibrium aggregate expenditure is below full employment GDP. B. equilibrium aggregate expenditure is above full employment GDP. C. government spending is insufficient causing a gap in GDP. D. equilibrium aggregate expenditure is equal to full employment GDP.