When real GDP is greater than potential GDP, there is ________ which leads the inflation rate to ________
A) a recessionary gap; rise
B) a recessionary gap; remain stable
C) an inflationary gap; rise
D) a recessionary gap; fall
E) an inflationary gap; fall
C
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Which of the following methods of restricting trade does NOT create a deadweight loss?
A) a tariff B) a quota C) a voluntary export restraint D) Both answers A and B are correct. E) None of the above answers is correct because all the methods create a deadweight loss
Will equilibrium in a market always result in an outcome that is economically efficient? Explain
What will be an ideal response?
In 2002, the Enron corporation was accused of falsifying information regarding liabilities on Enron's balance sheets, thereby
A) reducing Enron's profit on the balance sheet. B) increasing Enron's net worth on the balance sheet. C) reducing Enron's net income on the income statement. D) increasing Enron's assets on the balance sheet.
The percentage of demand deposits that banks and other financial intermediaries are required to keep in cash reserves is known as
a. the fractional reserve requirement b. the excess reserve requirement c. the legal reserve requirement d. the interest rate e. M1 money