In the RBC model, actual real GDP is
A) never equal to the natural real GDP.
B) equal to the natural real GDP when P = Pe.
C) equal to the natural real GDP when P is equal to or greater than Pe.
D) always equal to the natural real GDP.
D
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Two nations, ECON and OMICS, each produce goods A and B. The table gives points on each nation's production possibilities curve.ECONOMICSABAB08024162182441232664080For OMICS, the opportunity cost of producing an additional unit of B is
A. 2/3 unit of A. B. 1/2 unit of A. C. 1 unit of A. D. 1/3 unit of A.
The future of any region dependent on export industrial growth is influenced by:
(a) the region's natural endowment at given technology levels. (b) the character of the export industry. (c) subsequent changes in technology and transport costs. (d) all of the above.
If demand for a good is price elastic, then the price elasticity will be:
a. equal to one. b. equal to zero. c. greater than one. d. less than one. e. less than zero.
Governments should tax a market with an inelastic demand if the purpose of the government is to: a. increase its tax revenue
b. discourage the consumption of a good. c. increase the deadweight loss from the tax. d. discourage the production of a good.