In the short run, real GDP can increase beyond a level consistent with the long-run growth path if
A. we measure in nominal terms instead of real terms.
B. labor productivity improves.
C. the price level decreases accordingly.
D. there is an increase in marginal tax rates.
Answer: B
You might also like to view...
The four main forms of income that economists have identified include all of the following except
a. wages b. wealth c. rent d. profit e. interest
When lumber from Brazilian forests is used by a U.S.-owned company to produce furniture in Canada, the value of the furniture produced will be counted as a final good in
A) U.S. GDP. B) Canada's GDP. C) Brazil's GDP. D) Brazil's GNP.
Refer to the information provided in Figure 25.2 below to answer the question(s) that follow.
Figure 25.2Refer to Figure 25.2. Suppose money demand is currently at Point A. A decrease in the interest rate to 5%, ceteris paribus, will likely
A. increase the quantity of money demanded from $100 million to $200 million. B. increase the quantity of money demanded from $100 million to $150 million. C. decrease the quantity of money demanded from $200 million to $100 million. D. increase the quantity of money demanded from $150 million to $300 million.
Refer to the data. The four-firm concentration ratio for the industry is:
A. 100 percent.
B. indeterminate since we don't know which four firms are included.
C. 80 percent.
D. 20 percent.