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Question
Which of the following conditions describes a recessionary gap?
A) The short-run equilibrium level of real GDP is above the long-run level of real GDP.
B) The short-run equilibrium level of real GDP is below the long-run level of real GDP.
C) The actual interest rate is above the equilibrium interest rate.
D) The actual interest rate is below the equilibrium interest rate.
Answer
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Related questions
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Suppose that the implicit cost for a business was $1,000 and the explicit cost was $5,000 and that the firm sold 1,000 units of its products at $6 per item. We can conclude that the firmʹsA) accounting profit was $6,000, and its economic profit was $0. B) accounting and economic profits were both $0.C) accounting profit was $1,000, and economic profit cannot be determined. D) accounting profit was $1,000, and economic profit was $0.
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Why should a perfect competitor produce at which price equals marginal cost?
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Why?
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Which of the following type of shops is unlawful under the provisions of the Taft -Hartley Act?A) union shops B) closed shopsC) modified union shops D) open shops