If the GDP chain price index in a given year is greater than 100, real GDP in that year would be greater than nominal GDP
a. True
b. False
Indicate whether the statement is true or false
False
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For firms that sell one product in a perfectly competitive market, the market price is:
A. constant, regardless of quantity sold. B. equal to average revenue for a firm. C. equal to marginal revenue for a firm. D. All of these are true.
If real GDP is $1000 billion and the aggregate expenditure is $850 billion, then the change in inventories will be
A. $150 Billion B. $1,850 million. C. –$1,850 million. D. –$150 million.
Refer to Figure 23.5 for a perfectly competitive firm. If this firm produces the level of output corresponding to point B in the short run, it will earn
A. The maximum profit possible. B. A loss. C. Zero economic profit. D. A profit, although not the maximum profit possible.
Refer to the information provided in Figure 10.3 below to answer the question(s) that follow. 
Figure 10.3 Refer to Figure 10.3. If labor supply is given by S1 and the firm is using K1 units of capital, this firm should hire ________ units of labor to maximize profit.
A. I0 B. I1 C. I2 D. I3