Suppose that aggregate demand increases along the upward sloping portion of the aggregate supply curve. What is the result?
A) Real GDP increases more than nominal GDP increases.
B) Nominal GDP and real GDP increase by the same amount.
C) Nominal GDP increases more than real GDP increases.
D) Nominal GDP and real GDP decrease by the same amount.
C
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A example of a good with external benefits is
A) a pizza. B) a dose of flu vaccine. C) a sewing machine. D) an imported good. E) a pair of running shoes.
Consumer surplus is the:
A) difference between the buyer's reservation value and the price he actually pays. B) product of a buyer's reservation value and the price he actually pays. C) sum of a buyer's reservation value and the price he actually pays. D) ratio of a buyer's reservation value to the price he actually pays.
The Service Employees International Union is an example of a(n)
A) guild. B) craft union. C) industrial union. D) public-sector union.
(I) A monetary policy that results in price stability will encourage the realization of gains from trade and thereby help promote economic growth. (II) High tariffs and restrictive quotas will encourage rapid economic growth
a. I is true; II is false. b. II is true; I is false. c. Both I and II are true. d. Both I and II are false.