If the price level in an economy rises and its output level decreases as it gravitates toward its potential GDP, then:
a. a policy to manipulate the aggregate supply is being used
b. an active approach to correcting a recessionary gap is being used.
c. an active approach to correcting an expansionary gap is being used.
d. a passive approach to correcting a recessionary gap is being used.
e. a passive approach to correcting an expansionary gap is being used.
e
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With respect to wealth in the United States, we presently find that the richest one percent of Americans own approximately how much of the nation's wealth?
A) 10 percent B) 35 percent C) 70 percent D) 85 percent
Which of the following is NOT a characteristic of a centrally planned economy?
A. Consumers vote with their dollars thus guiding resources to produce what the society wants. B. Government sets the prices. C. The government decides how much of each good should be produced. D. All of these statements are characteristics of centrally planned economy.