The quantity of real GDP demanded equals $16.4 trillion when the price level is 95. If the price level falls to 90, the quantity of real GDP demanded equals
A) less than $16.4 trillion.
B) $16.4 trillion.
C) more than $16.4 trillion.
D) more information is needed to determine if the quantity of real GDP demanded increases, decreases, or does not change.
C
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Governments,
A) like individuals, face opportunity costs. B) unlike individuals, do not face opportunity costs. C) only if they are relatively poor, face opportunity costs. D) only if they are running budget deficits, face opportunity costs.
Refer to the above figure. A surplus occurs if the government imposes
A) a price floor at $60. B) a price floor at $20. C) a price ceiling at $60. D) a price ceiling at $20.
The four-firm concentration ratio is calculated by adding the _____________ of the four largest firms in the industry.
a. profits b. total earnings c. market shares d. costs of wages
Which of the following does NOT help explain why oligopolies exist?
A. product homogeneity B. mergers C. barriers to entry D. economies of scale