How is it possible for the economy to have a recessionary gap?
A. Equilibrium is at a GDP level below full employment.
B. Equilibrium is at a GDP level equal to full employment.
C. Equilibrium is at a GDP level above full employment.
D. GDP is rising at full employment.
E. GDP is falling at full employment.
Answer: A
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Which of the following would result in a trade surplus for the United States?
A) Exports of goods = $550 billion Imports of goods = $575 billion Exports of services = $275 billion Imports of services = $300 billion B) Exports of goods = $725 billion Imports of goods = $790 billion Exports of services = $350 billion Imports of services = $260 billion C) Exports of goods = $625 billion Imports of goods = $625 billion Exports of services = $300 billion Imports of services = $375 billion D) None of the above will result in a trade surplus.
If banks are prevented from lending out funds, there will be no money creation in an economy
a. True b. False Indicate whether the statement is true or false
A . What is the theory of creative destruction? b. According to this theory, do we need to worry about the fact that our local power utility has a monopoly in the provision of electricity?
If nations trade on the basis of comparative advantage
A. a nation can gain only at the expense of trading partners. B. exporting nations gain and importing nations lose. C. importing nations gain and exporting nations lose. D. all trading partners mutually gain.