According to the hypothetical economy in Figure 5.2, real GDP differs from nominal GDP from 1980 to 2000 because
A. Inflation caused the dollar value of output to decrease.
B. Population growth exceeded output growth.
C. Price level increases caused real GDP to increase.
D. Inflation caused the dollar value of output to increase.
Answer: D
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The inability of wages to adjust to market conditions is called ________
Fill in the blank(s) with correct word
In the trade-based theory of exchange rate determination, the quantity supplied of a currency in the foreign exchange market results from
A) its exports of goods and services. B) the nation's demand for imports C) the level of domestic absorption. D) the import demand curve.
A strategy A is "dominant" for a player X if
A) strategy A contains among its outcomes the highest possible payoff in the game. B) irrespective of any of the possible strategies chosen by the other players, strategy A generates a higher payoff than any other strategy available to player X. C) strategy A is the best response to every strategy of the other player. D) strategy A is the best response to the best strategy of the other player. E) every outcome under strategy A generates positive payoffs.
If a price ceiling were established above the equilibrium price,
A) it would have no effect on the quantity demanded. B) it would create a shortage. C) it would create a surplus. D) none of the above.