Real GDP measures the
A) total profits earned by all businesses valued using prices from a single year.
B) changes in the prices of output measured in dollars.
C) general upward drift in prices.
D) value of total production linked to prices of a single year.
D
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Andrew Carnegie, the first U.S. steel mogul, built his empire by
a. patenting each new type of steel b. owning all of the U.S. iron ore deposits c. being the most efficient, that is, having the lowest ATC d. buying up his competitors e. enlisting the protection of the government
A period marked by falling wages, falling national output, and rising unemployment is called a recession.
a. true b. false
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
Related to the Economics in Practice on page 83: Which of the following best explains why the people who wait for hours to acquire tickets to free performances earn less on average than the people who actually see those performances?
A. People interested in live performances are likely to have access to other forms of entertainment, such as television and radio. B. High-wage individuals are more likely to have schedule conflicts that prevent them from using their tickets. C. The value of time spent waiting in line is less for people who earn less money. D. People who earn more money are less likely to be aware of the opportunity to acquire free tickets.