What are the three primary measures used in macroeconomics to assess the performance of an economy?
What will be an ideal response?
The three primary measures used in macroeconomics to assess the performance of an economy are real GDP, unemployment, and inflation. Real GDP provides an overall indicator of output or production in the economy while unemployment measures the degree to which labor resources are being fully used. Inflation tracks the overall increase in the level of prices in the economy. Each measure is important for tracking the short-run and long-run health of the economy and for creating macroeconomic models to address important policy questions.
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Refer to the figure above. The equilibrium quantity of dollars traded is:
A) 100 dollars. B) 300 dollars. C) 650 dollars. D) 50 dollars.
Price ceilings result in shortages
Indicate whether the statement is true or false
Which of the following is not considered part of the services category under the expenditure approach to GDP accounting?
a. sporting events b. haircuts c. commercial airline transportation d. privately owned jets
If a firm is producing 10 pizzas, and the price of a pizza = $3.50, the AFC = $.80, and AVC = $3.00, then the firm is
a. earning a profit of $.80 per pizza b. earning a total profit of $8.00 c. losing $.30 per pizza d. losing a total of $6.00 e. earning a profit of $.50 per pizza