Which prices are used to measure goods and services in calculating the nominal GDP?
A) average prices B) past years prices C) current prices D) projected prices
C
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When there is a recessionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; decline B. increase; raise; decline C. decline; lower; expand D. decline; raise; decline
If the expected inflation rate was 2.5%, the expected real interest rate was 4.0%, and the actual inflation rate turned out to be 3.2%, then the real interest rate equals
A) 1.7%. B) 3.2%. C) 3.3%. D) 4.7%.
A price-taking firm and a monopoly firm are alike in that: a. price equals marginal revenue for both
b. both maximize profits by choosing an output where marginal revenue equals marginal cost. c. price exceeds marginal cost at the profit-maximizing level of output for both. d. in the long run, both earn zero economic profits.
When MB = 171 ? 8Y and TC = 5Y2 + 108, the optimal level of Y is:
A. 8. B. 24. C. 9.5. D. 25.