The structural unemployment rate is 2.3 percent, the frictional unemployment rate is 2.4 percent, and the economy's current unemployment rate is 4.1 percent. The economy is in
A) a recessionary gap producing less than Natural Real GDP.
B) an inflationary gap producing more than Natural Real GDP.
C) long-run equilibrium.
D) an inflationary gap producing Natural Real GDP.
E) a recessionary gap producing more than Natural Real GDP.
B
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The difference between an agency office located abroad and a subsidiary bank located abroad is
A) an agency office is just a home bank in another country while a subsidiary bank is controlled by a foreign bank and subject to the same regulations as local banks. B) an agency office is just a home bank in another country while a subsidiary bank arranges loans and transfers funds but does not accept deposits. C) an agency office arranges loans and transfers funds but does not accept deposits while a subsidiary bank is controlled by a foreign bank and subject to the same regulations as local banks. D) an agency office arranges loans and transfers funds but does not accept deposits while a subsidiary bank is just a home bank in a foreign country. E) an agency office is controlled by a foreign bank and subject to the same regulations as local banks while a subsidiary bank arranges loans and transfers funds but does not accept deposits.
Assuming that firms maximize profits, how will the price and output policy of an unregulated monopolist compare with ideal market efficiency?
a. The output of the monopolist will be too large and the price too high. b. The output of the monopolist will be too large and the price too low. c. The output of the monopolist will be too small and the price too high. d. The output of the monopolist will be too small and the price too low.
Consider the monopoly depicted in Figure 13.3. Relative to the cost of producing the quantity the monopolist would choose under an average-cost pricing policy, the cost of producing Q4 units is:
A. less. B. the same. C. more. D. twice as much.
A cartel is a group of consumers that tries to act together to increase their bargaining power.
a. true b. false