A stock bubble is against insider trading laws and if you participate in one you can be arrested.
Answer the following statement true (T) or false (F)
False
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A recessionary gap means that the level of real GDP at the short-run macroeconomic equilibrium
A) is less than full-employment GDP. B) equals full-employment GDP. C) is more than full-employment GDP. D) may be less than, more than, or the same as full-employment GDP depending on the level of potential GDP.
The __________ market liquidity is, the __________ the bid-asked spread will be
A) higher; wider B) lower; narrower C) higher; narrower D) None of the above.
If you and your friends are still looking for a job eighteen months after graduation, even after lowering your expectations, you're probably living in the business cycle phase of a
a. recession b. peak c. boom d. recovery e. prosperity
The use of chlorofluorocarbons in refrigerators and air conditioners is alleged to cause the destruction of the ozone layer that surrounds the earth and which protects humans from ultraviolet radiation. Output of this substance has been restricted by a licensing system where producers have to bid in the open market for licenses to produce them in specified quantities. This is an example of
dealing with externalities by a. voluntary compliance. b. direct controls. c. taxes. d. the market mechanism.