Which of the following statements is TRUE?
A) Real GDP fluctuates around potential GDP.
B) Potential GDP fluctuates around real GDP.
C) Potential GDP is the same as real GDP.
D) When all of the economy's resources are fully employed, the value of production is called real GDP.
A
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When the economy is in long-run equilibrium, the price level adjusts so as to equate which two values with one another?
A) total planned real expenditures and total planned production B) government spending and tax revenues C) the inflation rate and the unemployment rate D) import and export spending
Bureaus are
a. special-interest groups that try to influence legislators b. government agencies that implement legislation c. competing-interest groups that battle federal agencies d. collections of legislators who actively engage in logrolling e. a means of enforcing the median voter model in the decision-making process
Slope will vary along a curve (as opposed to a straight line)
a. True b. False Indicate whether the statement is true or false
The demand curve for a product will be more elastic when:
a) The amount of income spent on the product is small. b) There are many substitutes. c) Quantity demanded is unresponsive to a change in price. d) Consumers have insufficient time to adjust to changes in price.