One lesson of the Great Depression was that potential GDP could _____
Fill in the blank(s) with the appropriate word(s).
exceed equilibrium GDP
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Which of the following is not an explicit cost?
a. Salaries. b. Sales taxes. c. Utilities, such as gas and electricity. d. Insurance. e. The firm owner's time.
Other things the same, as the price level falls, the real value of a dollar
a. rises, and interest rates rise. b. rises, and interest rates fall. c. falls, and interest rates rise. d. falls, and interest rates fall.
Refer to the information provided in Table 3.2 below to answer the question(s) that follow.Table 3.2Price per CheeseburgerQuantity Demanded (Cheeseburgers per Month)Quantity Supplied (Cheeseburgers per Month)$51,500 500 61,200 700 7 900 900 8 6001,100 9 3001,300Refer to Table 3.2. In this market there will be an excess supply of 1,000 cheeseburgers at a price of
A. $5. B. $6. C. $7. D. $9.
Suppose the measured unemployment rate is 4.5% and the true natural rate of unemployment is 5.1%. What should policymakers do in this situation? Suppose that the chair of the Federal Reserve believes the natural rate of unemployment to be 4.0%
What will the chair of the Fed do in this situation, and will this be a good decision?