If the natural unemployment rate is 5 percent and the current unemployment rate is 6 percent, then the economy is
A) producing a level of Real GDP that is greater than the level of natural Real GDP.
B) in an inflationary gap.
C) producing a level of Real GDP that is less than the level of natural Real GDP.
D) a and b
E) b and c
C
Economics
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In the short run, a profit-maximizing firm will shut down if its total revenue is greater than its variable costs
Indicate whether the statement is true or false
Economics
In the simple deposit expansion model, a decline in checkable deposits of $500 when the required reserve ratio is equal to 10 percent implies that the Fed
A) sold $500 in government bonds. B) sold $50 in government bonds. C) purchased $50 in government bonds. D) purchased $500 in government bonds.
Economics