What is meant by real Gross Domestic Product? How do you think that you calculate a real statistic?
What will be an ideal response?
Real Gross Domestic product measures total output in the U.S. adjusted for changes in the price level. The easiest way to calculate a real statistic is to use a constant set of prices across every year.
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Most of the empirical research on long-run costs suggests that the long-run average cost curve for most firms has a very pronounced U-shape
Indicate whether the statement is true or false
A person who works 25 hours per week: a. is considered to be a discouraged worker. b. is considered to be unemployed
c. is considered to part of the labor force. d. none of the above
In comparing long-run and short-run costs, which of the following statements is true at each level of output?
a. long-run total cost is always less than short-run total costs b. long-run total cost cannot exceed short-run total cost c. long-run and short-run total costs are equal when fixed costs are large d. firms usually make decisions about production levels based on long-run costs rather than short-run costs e. short-run total cost cannot exceed long-run total cost
The market maximizes total surplus under what conditions?
What will be an ideal response?