The aggregate supply curve is drawn with
a. the price level on the vertical axis and nominal GDP on the horizontal.
b. nominal GDP on the vertical axis and real GDP on the horizontal.
c. the price level on the vertical axis and real GDP on the horizontal.
d. real GDP on the horizontal and the rate of inflation on the vertical.
c
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The instrumental variables in the two stage least squares estimation method consists of endogenous variables appearing in either equation.
Answer the following statement true (T) or false (F)
Real GDP equals:
A. nominal GDP minus net exports. B. nominal GDP divided by the GDP deflator. C. nominal GDP multiplied by the GDP deflator. D. GDP minus depreciation.
The decreasing portion of a firm's long run average cost curve is attributable to:
A. diminishing returns to scale. B. increasing marginal cost. C. economies of scale. D. diseconomies of scale.
When workers subdivide the tasks of a job in such a way so as to become more efficient, economists refer to this as
A. the degrees of freedom. B. the division of tasks. C. the division of labor. D. the separation of powers.