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Unformatted text preview: c) potential output grows rapidly; actual output rises above potential output.
d) potential output grows slowly; actual output falls below potential output
e) potential output grows slowly; actual output rises above potential output
34. Since the end of World War II, recessions in the U.S have ______ than expansions.
a) been more predictable
d) been longer in duration, on average,
b) occurred more frequently
e) generated more inflation
c) been shorter in duration, on average,
35. In the Keynesian model, a $5 billion decrease in autonomous planned investment leads
to ______ in short-run equilibrium output.
a) a $5 billion decrease
d) more than a $5 billion decrease
b) no change
e) a greater than $5 billion increase
c) a $5 billion increase
36. If actual output equals potential output, but potential is growing very slowly, then an
a) has an output gap.
d) has an expansionary gap.
b) is in a recession.
e) is in an expansion.
c) has a recessionary gap. Page 8 of 11 ECO 2013 – Section 0008 – QUIZ IV – Version 1
O. Mikhail – http://www.bus.ucf.edu/omikhail 37. In Macroland potential GDP equals $500 billion and real GDP equals $485 billion.
Macroland has a(n) _________ gap equal to _____ percent of potential GDP.
a) expansionary; 3
d) expansionary; -3
b) recessionary; -3
e) recessionary; 3
c) recessionary; 15
38. In Okunland, a country that operates according to Okun's law, real GDP equals $7,520
billion, potential GDP equals $8,000 billion and the actua...
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This note was uploaded on 03/31/2012 for the course ECON 112 taught by Professor Merinoff during the Spring '12 term at SUNY Jefferson.
- Spring '12