If nominal GDP is $8 trillion and real GDP is $10 trillion, then the GDP deflator is

a. 80, and this indicates that the price level has decreased by 20 percent since the base year.
b. 80, and this indicates that the price level has increased by 80 percent since the base year.
c. 125, and this indicates that the price level has increased by 25 percent since the base year.
d. 125, and this indicates that the price level has increased by 125 percent since the base year.


a

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A) business profits are too. B) profits must equal losses in the short run. C) profits must equal losses in the long run. D) losses could be eliminated if we could eliminate uncertainty in the real world, but profits will still remain.

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Consumers of the exportable product in the exporting country are most likely to gain when trade is based on

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In the table below, what are the marginal costs of the fourth unit of output?

A. $30,000 B. $20,000 C. $10,000 D. $40,000

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