The GDP gap is the difference between:
a. frictional unemployment and actual real GDP.
b. unemployment rate and real GDP deflator.
c. actual real GDP and full-employment real GDP .
d. full-employment real GDP and real GDP deflator.
c
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Which of the following will NOT shift the short-run aggregate supply (SRAS) curve?
A) a reduction in the price of a raw material B) technological progress C) a change in the wage rate D) a change in the price level
To achieve allocative efficiency, one must compare the
A) marginal cost of a good to its opportunity cost. B) opportunity cost to the attainable point on the production possibilities frontier. C) marginal benefit of a good to its marginal cost. D) marginal cost to the production efficiency cost. E) point of production efficiency to the point of allocative efficiency.
Economics
A) is a social science. B) is concerned with limited resources. C) is concerned with unlimited wants. D) All of the above are correct.
In the two-period dynamic monopoly, if the monopolist succeeds in selling a sufficiently high quantity in the first period,
A) the second-period demand curve will lie close to the price axis. B) the second-period demand curve will become horizontal. C) the second-period demand curve will become unit elastic. D) the second-period demand curve will shift substantially to the right.