The aggregate supply curve is defined as:
a. net national product.
b. the sum of wages, rent, interest, and profits.
c. the real GDP produced at different price levels.
d. the total dollar value of household expenditures.
c
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Is nominal GDP measured in terms of quantity or in terms of dollars? If dollars, the value of the dollar from what period? Is real GDP measured in terms of quantity or in terms of dollars? If dollars, the value of the dollar from what period?
What will be an ideal response?
The government's profit from issuing fiat money is known as
A) seigniorage. B) menu costs. C) commodity profit. D) tax distortions.
Why don't some firms in monopolistic competition earn losses in the long run?
A) The firms have enough monopoly power to ensure they always earn profits. B) Free entry allows enough firms to remain in the market and maintain the critical mass of firms required to attract customers. C) Free exit implies that any unprofitable firms leave the market in the long run. D) In the long run, firms will build enough brand loyalty among customers to ensure a profitable level of sales.
Which of the following is evidence of an inflationary gap?
a. very long lines at employment agencies b. very short waiting times for product delivery c. very low sales figures d. very long search times for people looking for jobs e. very low unemployment rates