The level of output (real GDP) that equals aggregate expenditure is called the ________ level of real GDP.
A. induced
B. potential
C. natural rate
D. equilibrium
Answer: D
You might also like to view...
Which of the following is necessary in order for a firm to successfully practice price discrimination?
A) The firm must practice product differentiation. B) The firm's transactions costs must be zero. C) The firm must be able to segment the market for the product. D) The demand for the firm's product is inelastic.
The price elasticity of demand for a commodity is determined primarily by the
a. size of the consumer surplus. b. availability of good substitutes for the good. c. incomes of consumers. d. availability of complementary goods.
Suppose that the country of Aquilonia has an inflation rate of about 6 percent per year and a real growth rate of about 3 percent per year. Suppose also that it has nominal GDP of about 500 billion units of currency and current nominal national debt of 100 billion units of domestic currency. Which of the following government spending and taxation figures will keep the debt to income ratio
constant? a. government spending equal to 50 billion units and tax collections equal to 48 billion units b. government spending equal to 50 billion units and tax collections equal to 41 billion units c. government spending equal to 50 billion units and tax collections equal to 40 billion units d. government spending equal to 50 billion units and tax collections equal to 32 billion units
Purchasing power parity (PPP) measurements of income are a way to make international comparisons by correcting for national differences in
A) unemployment. B) inflation. C) prices of goods and services. D) economic growth.