In Macroland, potential output equals $100 trillion and the natural rate of unemployment is 4 percent. If the actual unemployment rate is 3 percent, then real GDP equals:
A. $97 trillion.
B. $98 trillion.
C. $102 trillion.
D. $101 trillion.
Answer: C
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Which statement most accurately describes what happens when both supply and demand curves shift?
a. When both curves shift, typically we can determine the overall effect on price and on quantity. b. When both curves shift, typically we can determine the overall effect on price but not on quantity. c. When both curves shift, typically we can determine the overall effect on price or on quantity, but not on both. d. When both curves shift, typically we can determine the overall effect on quantity, but not on price.
Reserves demanded varies
a. inversely with both prices and output. b. inversely with prices and directly with output. c. directly with prices and inversely with output. d. directly with both prices and output.
If a firm in a perfectly competitive market faces a market price of $7, and it decides to increase its production from 4,000 to 12,000 units, the firm's marginal revenue will:
A. stay the same. B. rise once diminishing marginal product sets in. C. increase from $28,000 to $84,000. D. diminish once diminishing marginal product sets in.
After a corporation issues stock, the stock
a. cannot be resold. b. can be resold only if the corporation wants to buy it back. c. can be resold on exchanges; the resale will raise additional funds for the corporation. d. None of the above are correct.