Using "chain-weighted" prices to calculate real GDP remedies the distortions causes by changes in relative prices over time
Indicate whether the statement is true or false
TRUE
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If the government wants to raise tax revenue and shift most of the tax burden to the consumers, it would impose a tax on a good with a
a. flat (elastic) demand curve and a steep (inelastic) supply curve. b. steep (inelastic) demand curve and a flat (elastic) supply curve. c. steep (inelastic) demand curve and steep (inelastic) demand curve. d. flat (elastic) demand curve and a flat (elastic) supply curve.
For the perfectly competitive firm shown in Figure 9-6,
a.
profit rises when the firm raises its price and lowers its output
b.
the profit-maximizing output level is 180 units
c.
an economic loss occurs at the profit-maximizing output level
d.
the profit-maximizing output level is 100 units
e.
the firm will earn short-run profits
(1)(2)(3)(4)(5)QdQdPriceQsQs5040$1070806050960708060850609070740501008063040Refer to the above table. If demand is represented by columns (3) and (2) and supply is represented by columns (3) and (5), equilibrium price and quantity will be:
A. $10 and 60 units. B. $8 and 60 units. C. $7 and 50 units. D. $9 and 50 units.
Which of the following is true when an economy produces at full employment, but consumers, government, businesses, and the foreign sector do not buy all the output?
A. Inventories are depleted. B. Unemployment falls. C. The price level rises. D. There is a recessionary gap.