When the economy is producing at a quantity greater than its long-run aggregate supply:
A. we are experiencing a recession.
B. the economy is experiencing greater economic growth.
C. it is pushing some of its resources to operate beyond capacity.
D. it causes a bubble to form in one of its major sectors.
Answer: C
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Under the current structure of Medicare, the movement of the baby boom generation into the retirement phase of life will
a. increase the demand for medical services and the share of those services financed by third parties. b. push both healthcare prices and expenditures upward. c. cause Medicare expenditures to increase and necessitate the need for higher taxes to finance the program. d. do all of the above.
Supply and demand together determine the price and quantity of a good sold in a market
a. True b. False Indicate whether the statement is true or false