In the above figure, the inflationary gap can correctly be identified as
A. LRAS minus SRAS.
B. AD1.
C. the difference between 125 and 120.
D. the difference between 12.2 trillion and 12 trillion.
Answer: D
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Unlike most of sub-Saharan Africa in the nineteenth century, South Africa was __________.
When the misery index is used to judge macroeconomic conditions, reducing inflation by one percentage point
A) has no effect at all on how we judge the economy's performance. B) is of less benefit to the economy than reducing the unemployment rate by one percentage point. C) gives the same benefit to the economy as reducing the unemployment rate by one percentage point. D) is of greater benefit to the economy than reducing the unemployment rate by one percentage point.
In a sole proprietorship
a. only one product can be offered for sale b. only family members can be employed in the business c. the business cannot expand unless it becomes a partnership d. one person owns the business e. stock can be issued to raise money for the business
Credit may dry up at the start of an economic downturn because of all of the following except:
A. the free-rider problem worsens during a downturn. B. lenders require information and accurate information is more difficult to obtain. C. it becomes more difficult for lenders to determine the creditworthiness of borrowers. D. lenders see greater risk in making loans to borrowers.