If the actual rate of unemployment is above the natural rate of unemployment, then potential GDP is:
A. Equal to the GDP gap
B. Equal to actual GDP
C. Less than actual GDP
D. Greater than actual GDP
D. Greater than actual GDP
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Suppose Stan transfers $1,000 from his savings account into his checking account. What are the effects on M1 and M2 money supply?
A) M1 increases; M2 remains the same. B) M1 decreases; M2 increases. C) Both M1 and M2 increase. D) Both M1 and M2 decrease. E) Both M1 and M2 remain the same.
Suppose total factor productivity increases. Which of the following is incorrect?
A) Households are better off. B) Consumption goes up. C) The real wage goes down. D) Output goes up.
Which of the following would not cause market demand for a normal good to decline?
a. An increase in the price of a complement. b. An increase in the price of a substitute. c. An announcement by the Surgeon General that the product contributes to premature death. d. Consumer expectations that the good will go on sale in the near future. e. A decline in consumer income.
Figure 17-10
Refer to . Consumer surplus with trade and without a tariff is
a.
A.
b.
A + B.
c.
A + C + G.
d.
A + B + C + D + E + F.