Refer to the diagram, in which Q f is the full-employment output. If the economy's current aggregate demand curve is AD 0 , it is experiencing:
A. a positive GDP gap.
B. a negative GDP gap.
C. inflation.
D. an adverse supply shock.
B. a negative GDP gap.
Economics
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Agricultural price supports in the United States
A) harm U.S. consumers, U.S. taxpayers, and foreign farmers and creates a deadweight loss. B) benefit U.S. taxpayers, U.S. farmers, and U.S. consumers. C) create gains to U.S. farmers that are at least as large as losses to U.S. consumers. D) decrease the deadweight loss and improve market efficiency. E) None of the above answers is correct.
Economics
A unit-elastic demand curve never touches or crosses either of the axes. Why?
Economics