According to the AS-AD model, when real GDP is less than potential GDP, the unemployment rate is definitely
A) equal to the natural unemployment rate.
B) rising.
C) falling.
D) greater than the natural unemployment rate.
E) less than the natural unemployment rate.
D
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Which of the following is NOT a normative statement?
A) People buy more of a good or service when its price falls. B) The distribution of income is fair. C) The government ought to provide health care to everyone. D) Corporations should be more socially responsible.
The external cost of production is the cost incurred by
The external cost of production is the cost incurred by
A.
someone other than the producer.
B.
producing outside the facility.
C.
producing outside the country.
D.
producing a related external product.
Calculate the multiplier when the MPC is .5, .75, .90. What is the relationship between MPC and the multiplier?
What will be an ideal response?
If the price of an inferior good rises, the income effect will result in households buying ________ of the good and the substitution effect will result in households buying ________ of the good.
A. more; more B. more; less C. less; more D. less; less