The output gap is the
A) difference in graduation levels between high school and college.
B) difference between actual inflation and core inflation.
C) percentage deviation of real GDP from potential GDP.
D) percentage increase in the growth rate of real GDP.
E) percentage increase in the growth rate of real GDP minus the unemployment rate.
C
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In the above table, what is the four-firm concentration ratio for the Gadgets industry?
A) 25 percent B) 40 percent C) 250 percent D) 1,000 percent
Suppose the U.S. economy enters a recession and incomes fall. What will happen to the equilibrium prices and quantities of normal goods? Would your answer be the same if you were discussing inferior goods? Why or why not?
What will be an ideal response?
Generally with bond ratings, the ________ the rating, the higher the interest rate an investor will receive and the ________ the risk that the issuer of the bond will default
A) lower; higher B) higher; higher C) higher; lower D) lower; lower
If a dominant firm charged a very high price for its product, the firm ________ face scrutiny by the European Union competitive laws and ________ face scrutiny by the United States antitrust agencies.
A) would not necessarily; would B) would; would not necessarily C) would not necessarily; would not necessarily D) would; would