What explains any divergence between nominal and real GDP?
A) Constant prices
B) Changing prices
C) Constant output
D) Changing output
E) None of the above.
B
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The figure above shows the market for tires. According to the figure, the government collects ________ per month in total tax revenue
A) $600 million B) $1,200 million C) $2,000 million D) $900 million E) None of the above answers is correct.
Monopolists are able to price discriminate because
A) of differing willingness to pay among consumers. B) of differing price elasticities of supply. C) they have constant marginal cost. D) they have constant average cost.
Production indifference curves bow inward toward the graph’s origin because of
A. the law of diminishing returns to a single input. B. the law of diminishing marginal returns to scale. C. constant returns to scale. D. minimizing costs in the short run.
According to the classical model, an increase in aggregate demand would
A) lead the economy to recession. B) lead the economy to a deflationary cycle. C) cause an adjustment to a higher price level. D) raise real Gross Domestic Product (GDP) but leave the price level unchanged.