An economic boom that creates an inflationary gap is usually followed later by
a. falling prices.
b. a period of stagflation.
c. an increase of potential GDP.
d. an increase in aggregate supply.
b
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Gross domestic product understates the total production of final goods and services because of the omission of
A) intermediate goods. B) exports. C) inflation. D) the underground economy.
The share of federal government spending on healthcare has risen substantially over time. This is most likely a result of
a. medical advances that provide new, better, but often more expensive medical treatments. b. a rising population of the elderly in the economy. c. health insurance reform that will include government subsidies for health insurance for many low-to-moderate income families. d. All of the above are important factors.
Why are many banks closing some of their branches?
A. they are replacing them with ATM machines. B. they are losing money in many areas. C. they can't find qualified employees. D. the banking industry has over built during the Great Recession.
A tariff imposed on imported wine will cause the domestic ________ of wine to increase and the domestic ________ of wine to increase.
A. imports; exports B. price; production C. revenues; imports D. cost; price