Calculating real GDP growth requires
A. adjusting GDP for changes in the CPI.
B. estimating the GDP based on unadjusted price levels.
C. adjusting GDP for changes in the price level of all the items that go into GDP.
D. measuring the GDP with investment, government consumption and investment, and foreign trade.
Answer: C
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
Describe the three pillars of productivity growth
The long-run total cost of zero output is equal to
A. the marginal revenue product of labor. B. fixed cost. C. variable cost. D. zero.
Recall the Application about how to wash carbon out of the air to answer the following question(s).This Application deals with the problem of ________ emissions in the atmosphere.
A. fracking B. smog C. carbon D. None of these