When GDP is measured in "current prices" it is known as the
A) real GDP.
B) nominal GDP.
C) real GNP.
D) nominal GNP.
Answer: B) nominal GDP.
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Due to a tax rebate before the election, there was an increase in the spending power of individuals. The unpredicted increase in the demand for goods and services caused a _____
a. macroeconomic shortage b. macroeconomic surplus c. recession d. depression
What will decrease SRAS?
a. improvements in technology b. increases in the capital shock c. decreases in consumer confidence d. increases in wages
If regulators set a price according to marginal cost pricing, the firm will ______.
a. earn positive economic profits b. make zero economic profits c. suffer an economic loss d. earn the same level of profits as it would absent regulation
Which of the following is a result of imposing a rent ceiling?
A) Some consumer surplus is converted to producer surplus. B) There is an increase in the quantity of apartments supplied. C) There is an increase in the quantity of apartments demanded. D) The marginal benefit of the last apartment rented is less than the marginal cost of supplying it.