On the horizontal segment of the aggregate supply curve, real GDP can increase without causing an increase in the price level
Indicate whether the statement is true or false
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A patent gives an innovating firm how many years of legal protection from competition?
a. 1 year b. 5 years c. 10 years d. 20 years e. 23 years
The main problem with accepting the national security argument as a valid reason to restrict international trade is that
a. other countries could have produced the goods more efficiently b. almost all industries could be described as being vital to national security c. technology secrets are difficult to keep from other countries in this age of computer information d. it will become too expensive to produce national security goods within the country e. in reality, tariffs are impossible to enforce effectively because of the black market
Suppose there are only two firms in an economy: Cowhide, Inc produces leather and sells it to Couches, Inc, which produces and sells leather furniture. With each $1,000 worth of leather that it buys from Cowhide, Inc, Couches, Inc produces a couch and sells it for $2,600 . Neither firm had any inventory at the beginning of 2015 . During that year, Cowhide produced enough leather for 25 couches
Couches, Inc bought 80% of that leather for $20,000 and promised to buy the remaining 20% for $5,000 in 2016 . Couches, Inc produced 20 couches during 2015 and sold each one during that year for $2,600 . What was the economy's GDP for 2015? a. $25,000 b. $52,000 c. $57,000 d. $65,000
Because the prices of final goods and services tend to increase more quickly than the prices of inputs, the short run aggregate supply curve is:
A. perfectly elastic. B. upward sloping. C. downward sloping. D. perfectly inelastic.