According to an old saying, when too much money is chasing too few goods, we have a(n)
a. recessionary gap.
b. inflationary gap.
c. full employment.
d. paradox of thrift.
b
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In the long run, a firm will exit an industry if the market price is less than its
a. break-even price. b. shutdown price. c. marginal cost. d. fixed cost.
The income of the household lying at the exact middle of the income distribution is:
a. mean household income. b. median household income. c. modal household income. d. second quintile household income.
Monetary policy includes adjustments in ________ so as to change ________.
Fill in the blank(s) with the appropriate word(s).
The figure below illustrates the market for British pounds. D£ and S£ are the nonofficial demand and supply curves of the British pounds, respectively.
Who among the following groups will most likely benefit if the exchange rate is pegged at $2.50 per pound?
A. British importers B. Import-competing producers in the U.K. C. U.S. importers D. British exporters