On the long-run aggregate supply curve
A) an increase in the price level reduces the aggregate quantity of GDP supplied.
B) an increase in the price level has no effect on the aggregate quantity of GDP supplied.
C) an increase in the price level increases the level of potential GDP.
D) an increase in the price level increases the aggregate quantity of GDP supplied.
B
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Answer the next question using data in the following tables showing production possibilities for units of food and clothing for two regions, East and West, of a hypothetical world.East Production PossibilitiesWest Production Possibilities ABCD ABCDFood241680Food4530150Clothing04812Clothing051015The mutually beneficial terms of trade will be
A. between 2 and 3 units of food for 1 unit of clothing. B. less than 2 units of food for 1 unit of clothing. C. greater than 4 units of food for 1 unit of clothing. D. between 4 and 5 units of food for 1 unit of clothing.
Discouraged workers are
A) those who have given up looking for work, even though they would like to be employed. B) those who quit working because they are dissatisfied with their jobs. C) those unmotivated workers who bring down a country's productivity. D) those who would like to find a second job to supplement their income, but have not yet found one.
Suppose a large tree on Jack's property blocks Amy's view of the ocean. Jack accepts Amy's offer of $2,000 to cut down the tree. This is an example of
A) internalizing externalities via voluntary agreements. B) a result of logrolling. C) a consequence of a positive externality. D) a consequence of private costs exceeding social costs.
Why do we not count the value of intermediate goods and services in gross domestic product? Does the value of intermediate goods and services show up in gross domestic product? If so, how?
What will be an ideal response?