To determine real GDP, divide nominal GDP by the
a. current values of goods and services.
b. final goods and services.
c. GDP deflator.
d. value of GDP.
c. GDP deflator.
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Which of the following is an example of a trade restriction?
A) Consumers prefer German beer to domestic beer. B) Japan places a tax on all Korean automobiles. C) Domestic wine is more expensive than wine imported from Chile. D) The United States, Canada, and Mexico sign the NAFTA agreement.
Because demand curves slope downward according to the Law of Demand, the price elasticity of demand is a negative number
Indicate whether the statement is true or false
Suppose an economy with two goods (candy and desk) and two identical agents that is in a competitive equilibrium. The marginal cost of a piece of candy is given by MCc = 4Qc and the marginal cost of a desk is MCd = 2 + Qd. The current production level of candy (Qc) is 4 pieces and of desks (Qd) is 30. What can be said about the marginal utility of candy (MUc) and the Marginal utility of desks
(MUd)? A) 3MUc = MUd B) MUc = 0.5MUd C) MUc = MUd = 4 D) MUc = 2MUd
Other things equal, a decrease in government spending ________ the equilibrium interest rate and ________ equilibrium output.
A. decreases; decreases B. decreases; increases C. increases; decreases D. increases; increases