Multiple Choice
An economy's AD function is Y = 1000 - 2P and AS function is P = 20 + 0.1Y. If the potential Y is 900, the recessionary gap would be:
A) 200.
B) 100.
C) 50.
D) None of the above.
Correct Answer:
Verified
Correct Answer:
Verified
Q47: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB10399/.jpg" alt=" -Refer to Figure
Q48: The potential output line shows:<br>A) the maximum
Q49: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB10399/.jpg" alt=" -Refer to Figure
Q50: A rise in domestic prices relative to
Q51: The wealth effect indicates that:<br>A) an increase
Q53: In some industries market power gives producers
Q54: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB10399/.jpg" alt=" -Refer to Table
Q55: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB10399/.jpg" alt=" -Refer to Table
Q56: <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB10399/.jpg" alt=" -Refer to Table
Q57: Other things being equal, the higher the