If there is currently a recessionary gap:
a. The price level will tend to rise.
b. Real output will tend to fall
c. Both a. and b. will occur.
d. None of the above will occur.
d
Economics
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If there are externalities present in a market, resources are allocated efficiently when marginal social cost equals marginal social benefit
Indicate whether the statement is true or false
Economics
John Brown's utility of income function is U = log(I+1), where I represents income. From this information you can say that
A) John Brown is risk neutral. B) John Brown is risk loving. C) John Brown is risk averse. D) We need more information before we can determine John Brown's preference for risk.
Economics