The level of real GDP in the long run is
A) potential GDP.
B) determined solely by aggregate demand.
C) affected by changes in the price level.
D) the same as the level of nominal GDP in the long run.
A
You might also like to view...
If not recycled, an input used in production ultimately winds up as a waste product.
Answer the following statement true (T) or false (F)
How does the price of the final good for which labor is used to produce affect the demand for labor?
What will be an ideal response?
The manufacturer of Beanie Baby dolls used quarterly price data for 2005 I - 2013 IV (t = 1, ..., 36) and the regression equationPt = a + bt + c1D1t + c2D2t + c3D3tto forecast doll prices in the year 2014. Pt is the quarterly price of dolls, and D1t, D2t, and D3t are dummy variables for quarters I, II, and III, respectively. 
What is the estimated intercept of the trend line in the 1st quarter?
A. 32 B. -8 C. 24 D. 16 E. none of the above
Suppose that Starbucks reduces the price of its premium coffee from $2.20 to $1.80 per cup, and as a result, the quantity sold per day increased from 350 to 450. Over this price range, the price elasticity of demand for Starbucks coffee is:
A. 0.40. B. 0.80. C. 1.25. D. 2.50.