If nominal GDP in 2012 was less than real GDP in 2012, we know for certain that
A) the price level in 2012 was greater than the price level in the base year.
B) real GDP in 2012 was greater than real GDP in the base year.
C) the price level in 2012 was less than the price level in the base year.
D) real GDP in 2012 was less than real GDP in the base year.
C
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Refer to the graph shown. If hamburgers are produced by a perfectly competitive industry with a market demand D:
A. output will be the same as it would be under monopoly. B. price will equal $6. C. price will equal marginal cost. D. price will be greater than marginal revenue.
Assume that the equilibrium price for a good is $5. If the market price is $10, a:
A. shortage causes the price to decline toward $5. B. surplus causes the price to rise above $10. C. shortage causes the price to rise above $10. D. surplus causes the price to decline toward $5.
Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply. B. a reduction in aggregate demand. C. an increase in long-run aggregate supply. D. an increase in aggregate demand.
Refer to the data. If the firm closed down in the short run and produced zero units of output, its total cost would be:
A. zero.
B. $50.
C. $150.
D. $100.