When the price level falls from 135 to 120, the aggregate level of GDP supplied falls from $140 billion to $125 billion. This ________ relationship represents the ________ relationship between GDP and the price level
A) positive; long-run B) negative; short-run
C) negative; long-run D) positive; short-run
D
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An example of a public good is national defense services
Indicate whether the statement is true or false
Which of the following is not true about the composition of GDP in 2014?
A) Imports are greater than exports. B) Business fixed investment is the largest component of investment. C) Purchases made by state and local governments are greater than purchases made by the federal government. D) The majority of consumer spending is on durable goods.
When a tax is placed on sellers, the actual incidence:
A. falls solely on the seller. B. falls solely on the buyer. C. may be shared between the seller and buyer. D. is higher because it is being placed on the seller.
If bottled water, soft drinks and juices are included in the definition of the beverage market, then the relevant definition of the market is defined by
A. the low degrees of substitution between products in the market. B. the high degrees of substitution between products in the market. C. a low level of competition among firms producing those products. D. the locations of products that are produced.