Which of the following is true of a recessionary gap?
a. It develops when the expected price level is less than the actual price level
b. In the long run, this gap closes when resource suppliers negotiate lower resource payments.
c. It measures the amount by which actual output is greater than the economy's potential output.
d. In the long run, this gap closes when the short-run aggregate supply curve shifts rightward.
e. In the long run, this gap closes when the aggregate demand curve shifts rightward.
b
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The income of the middle person in an income distribution is called the
A) mean income. B) average income. C) median income. D) per capita income.
The Clayton Act is an antitrust law that was passed to
A) outlaw monopolization. B) address loopholes in the Sherman Act. C) prohibit charging buyers different prices if the result would reduce competition. D) toughen restrictions on mergers by prohibiting mergers that reduce competition.