If short-run equilibrium GDP is above potential GDP, prices will eventually rise.
Answer the following statement true (T) or false (F)
True
You might also like to view...
The value of steel sold to an automobile producer is ________ directly included in the GDP because ________
A) always; it was produced during the current period B) never; to do so is to double count the value of the steel C) sometimes; the automobile may not be sold in the current period D) sometimes; the steel is sometimes not resold in the current period
In a large country case, an optimal tariff is one for which the terms-of-trade gain exceeds the:
a. producer surplus. b. increased price of the product imported. c. deadweight loss. d. consumer surplus.
In some countries the U.S. dollar is used as a unit of account rather than the local currency. The primary reason for this is that
A. the U.S. inflation rate is higher than the local inflation rate. B. the nation has been running a trade surplus. C. U.S. dollars reduce the need to change prices frequently. D. the nation has been running a trade deficit.
Economists distinguish among the immediate market period, the short run, and the long run by noting that:
A. Supply is most elastic in the short run, and least elastic in the immediate market period B. Demand is most elastic in the long run, and least elastic in the immediate market period C. Supply is most elastic in the long run, and least elastic in the immediate market period D. Supply is most elastic in the short run, and least elastic in the long run