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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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.
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.