?Exhibit 10A-2 Macro AD-AS Model
In Exhibit 10A-2, the long-run aggregate supply curve represents:
A. ?potential real GDP output for this economy.
B. that the economy is experiencing zero inflation.
C. ?that the economy is experiencing a recessionary gap.
D. ?the level of real GDP where the unemployment rate is zero.
Answer: A
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The shorter is the interval between firms' price adjustments,
A) a given unexpected increase in aggregate demand will cause a larger increase in output. B) the greater is the scope for activist policies to stabilize the economy. C) the smaller is the scope for activist policies to stabilize the economy. D) a given unexpected increase in aggregate demand will cause a smaller increase in the price level in the short run.
A depreciating nominal exchange rate results from
A) a depreciating real exchange rate. B) a low domestic inflation rate relative to the foreign inflation rate. C) an appreciating real exchange rate. D) a large government budget deficit.
One of the limitation of Five Forces is that they
a. Reduce producer surplus b. For one firm to increase profit, the profit of another participant must decrease c. Does not provide a firm with sustainable competitive advantage d. Both b and c
Consider a hypothetical economy, whose GDP was $10,000 . consumption equaled $9,800, investment equaled $125, goods exported equaled $255, and goods imported equaled $500, in 2010 . Calculate the government spending in this economy during the year
a. $120 b. $380 c. $245 d. $200 e. $320