Nominal GDP is ________.
A. the amount of production that occurs when the economy is operating at full employment
B. the sum of all monetary transactions involving final goods and services that occur in the economy in a year
C. the sum of all monetary transactions that occur in the economy in a year
D. money GDP adjusted for inflation
Answer: B
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Explain how a pollution tax is different from a Pigouvian tax. Discuss how incentives for firms differ under the two types of taxes, and what would be required of the government if it were to structure a Pigouvian tax system to mimic the effects of a pollution tax.
What will be an ideal response?
In long-run equilibrium for a single-price monopolist,
A. marginal revenue equals price. B. output is at the level where short-run and long-run marginal costs are the same. C. the plant size is always the one at the bottom of the long-run ATC curve. D. marginal cost equals ATC.
If Apple Computer Corporation constitutes a sizeable share of your current stock holdings, the purchase of which of the following stocks would provide you with the greatest reduction in risk?
What will be an ideal response?
Which of the following correctly describes the spending multiplier?
A. The initial change in consumption, investment, government spending, or net exports divided by the change in equilibrium GDP. B. An initial increase in aggregate expenditures divided by the equilibrium GDP. C. An initial increase in aggregate expenditures divided by the change in equilibrium GDP. D. The ratio of the change in real GDP to an initial change in any component of aggregate expenditures.