Choose which statement is most correct
A) Real GDP can never exceed potential GDP.
B) Real GDP must always equal potential GDP.
C) At times, real GDP can exceed potential GDP.
D) Nominal GDP can never exceed potential GDP.
E) Nominal GDP must always equal potential GDP.
C
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The economist who won the Nobel Prize in Economics for his path-breaking analysis of the ways in which property rights, transaction costs and institutions affect the allocation of economic resources is:
A. John Nash. B. Arthur Cecil Pigou. C. Ronald Coase. D. Theodore Groves.
Suppose the market clearing price is $15 and the price ceiling is $17. The price that prevails in the market will be
A) $17. B) $15. C) less than $15. D) more than $17.
A major element of the concepts of inflation and deflation is
A) the idea that price changes are measured daily. B) their dependence on average rather than individual prices. C) the requirement that ALL prices must be moving in the same direction. D) each household's willingness to report what they pay for goods and services each month.
The more the current price exceeds the equilibrium price, the:
A. smaller the resulting shortage will be. B. smaller the resulting surplus will be. C. greater the resulting surplus will be. D. greater the resulting shortage will be.