Refer to the above figure. What price-output combination would apply under perfect competition?
A) P4 and Q1
B) P3 and Q2
C) P2 and Q3
D) P1 and Q1
B
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If net exports are positive
A) net foreign investment is also positive. B) net foreign investment is negative. C) capital inflows must be greater than capital outflows. D) Both A and B are correct.
The most used tool of the Fed is:
A. open market operations. B. the reserve requirement. C. the discount window. D. These are all used with equal frequency.
If the GDP gap is -$3.5 trillion, then
A. workers are employed overtime. B. the economy is experiencing a boom. C. the economy is in a recession. D. cyclical unemployment is negative.
If the percentage change in the quantity demanded of a good is greater than the percentage change in price, price elasticity of demand is:
A. elastic. B. inelastic. C. perfectly inelastic. D. perfectly elastic.