What is the likely result from a depreciation of a nation's currency when its economy is already operating at its full-employment level of output?
A. Net exports fall and contribute to demand-pull inflation
B. Net exports rise and contribute to demand-pull inflation
C. Net exports fall, but equilibrium GDP rises
D. Net exports rise, but equilibrium GDP falls
B. Net exports rise and contribute to demand-pull inflation
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Answer the next question based on the following price and output data over a five-year period for an economy that produces only one good. Assume that year 2 is the base year.YearUnits of OutputPrice per Unit18$22103315441855206If year 2 is the base year, then the percentage increase in real GDP from year 2 to year 4 is ________.
A. 60% B. 100% C. 40% D. 80%
When the price of perfume changes from $24 to $26, the quantity supplied increases from 100 jars to 150 jars. What is the elasticity of supply of perfume?
A) 0.04 B) 25.0 C) 5.0 D) 0.2
In discussions of barriers to entry, what is meant by the term "virtuous cycle"?
A) A virtuous cycle refers to successful research and development that leads to information that is used to develop other new products. B) A virtuous cycle refers to the situation where the pursuit of self-interest in establishing an entry barrier leads to an increase in social welfare (the "invisible hand"). C) A virtuous cycle refers to a situation where if a firm can attract enough customers initially, it can attract additional customers because its product's value has been increased by other customers using it, which attracts even more customers. D) A virtuous cycle refers to a firm using the profits from a monopoly in one market to establish a monopoly in another market.
Which of the following is a supply factor in the health care market?
A. Defensive medicine. B. The aging of the population. C. Slow productivity growth in the health care industry. D. Asymmetric information.