Suppose the economy is currently operating at potential output; an expansionary gap may be caused by each of the following except:
A. a positive demand shock
B. a positive inflation shock
C. an increase in govt spending
D. an increase in the inflation rate
Answer: D. an increase in the inflation rate
Economics
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Which of the following is correct?
a. There is consensus among economists that unions are good for the economy. b. There is consensus among economists that unions are bad for the economy. c. There is consensus among economists that, on net, unions have almost no impact on macroeconomic variables. d. There is no consensus among economists about whether unions are good or bad for the economy.
Economics
Which of the following is a characteristic of a monopoly market?
A) many suppliers of similar products B) one single producer C) easy entry D) The firm is a price taker.
Economics