Measuring expenditures and income with the price level allowed to vary, so that changes in these values represent changes in either the actual amount of goods, services, and income or changes in the price level or a combination of both factors is
denoted in ________ terms. A) nominal
B) real
C) constant dollar
D) all of the above
A
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The value of the multiplier is likely to fall if there is a decrease in
A. total spending. B. income. C. the marginal propensity to consume. D. consumption.
A patent or copyright is a barrier to entry based on
A) widespread network externalities. B) ownership of a key necessary raw material. C) large economies of scale as output increases. D) government action to protect a producer.
A ________is a concept that describes the relationship between changes in output to different amounts of a single input while other inputs are held constant.
Fill in the blank(s) with the appropriate word(s).
Use the following information to answer the next several questions:Scenario 1: Imagine that an economy produces two goods, flashlights and fishing lures. In 2015, the economy produced 70 flashlights and 40 fishing lures, and the prices of flashlights and fishing lures were $5 and $12, respectively. In 2016, the economy produced 85 flashlights and 50 fishing lures, and the prices of flashlights and fishing lures were $7 and $15, respectively. Based on the information in Scenario 1, real GDP in 2016 (in 2015 dollars) in this economy was:
A. $830. B. $1,025. C. $1,090. D. $1,345.