Real GDP is:
a. the base year market value of all final goods and services produced domestically during a given period.
b. the current year market value of all final goods and services produced domestically during a given period.
c. usually greater than nominal GDP
d. the current year market value of domestic production of intermediate goods.
a
You might also like to view...
The result for the seller of being able to practice price discrimination will be
A) higher profits. B) lower demand elasticity. C) lower quantity sold. D) cost minimization.
During times of high unemployment, colleges often observe an increase in enrollment even if tuition remains unchanged. Why?
A. Students go to college even when the net benefit is negative. B. The opportunity cost of attending college is higher when unemployment is high. C. The benefit of attending college is lower because college graduates are less likely to find jobs. D. The opportunity cost of attending college is lower when unemployment is high.
Long-run aggregate supply corresponds to the level of potential output.
a. true b. false
Which of the following statements is definitely true when price is less than average total cost for a firm producing the profit-maximizing level of output in the short run?
A) The firm is running a loss in an accounting sense, so that total revenue is less than total explicit costs. B) The firm will minimize its losses by shutting down. C) The firm will be earning negative total revenue. D) The firm is incurring an economic loss.