If the full-employment level of real GDP is greater than the equilibrium level of real GDP, the nation would be experiencing a(n)
A) inflationary gap.
B) recessionary gap.
C) demand-pull inflation.
D) rising prices.
B
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Smith and Jones comprise a two-person economy. Their hourly rates of production are shown below. CalculatorsPer HourComputersPer HourSmith10010Jones1206If Smith and Jones devote all of their resources to producing computers, then the maximum number of computers they can produce in an hour is:
A. 10. B. 16. C. 6. D. 120.
Use the following figure showing the domestic demand and supply curves for product B in a hypothetical economy to answer the next question.
After trade, at a world price of Pw, producer surplus equals area(s)
A. E + H + J. B. B + C. C. D. D. B + C + D.
David Ricardo's assumption for economic rents for land was based on
A) the supply of land being a fixed quantity. B) a shortage of land. C) a surplus of land. D) total government control of land.
In order for a price ceiling to "bind," it:
A. must be set below the equilibrium price, and will likely cause a surplus. B. must be set above the equilibrium price, and will likely cause a surplus. C. must be set above the equilibrium price, and will likely cause a shortage. D. must be set below the equilibrium price, and will likely cause a shortage.