Which of the following leads to a decrease in real GDP?
A) an increase in interest rates
B) an increase in government spending
C) an increase in the inflation rate in other countries, relative to the inflation in the United States
D) Households have increasingly optimistic expectations about future income.
A
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If prices are held below the equilibrium price:
A) there exists a surplus in the market. B) there exists a shortage in the market. C) social surplus is maximized. D) all firms earn positive economic profits.
The accountant for Muzhi's Sushi claims that Muzhi has accomplished "economic efficiency." This means that Muzhi's Sushi
A) produces a given output using the least inputs. B) produces a given output at the lowest cost. C) has an economic profit greater than a normal profit. D) has a normal profit greater than an economic profit.
Promises of "a chicken in every pot" and "two cars in every garage" were made by presidential candidate ________.
Fill in the blank(s) with the appropriate word(s).
If the economy is represented in the graph shown and is currently at point E2, what could be said about the state of the economy?
A. The unemployment rate is just about the natural rate. B. There is lower unemployment than the natural rate. C. The unemployment rate is zero. D. There is higher unemployment than the natural rate.