During a recession, real output actually falls.
Answer the following statement true (T) or false (F)
True
Real GDP falls during a recession, and unemployment rises.
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For economic freedom to exist,
A) copyright laws must be abolished and markets supervised by the government. B) democracy must exist. C) human capital must be given away free. D) property rights must be protected and markets must be free. E) money must be free.
The marginal revenue product of labor equals
a. MP/wage b. change in total revenue/change in units of labor c. change in total revenue times the change in units of labor d. P/MP e. MP ? wage
The U.S. banks have grown primarily through: a. America's longstanding preference for big banks. b. surviving banks buying up bankrupt banks
c. excellent customer service. d. mergers and acquisitions. e. deposit insurance policy.
The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.