When cost-push inflation starts, real GDP ________ and the price level ________
A) decreases; falls
B) does not change; falls
C) decreases; rises
D) does not change; does not change
E) increases; falls
C
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Refer to the figure above. If A forms a customs union with C, it will import
A) 40 units from B. B) 70 units from C. C) 70 units from each. D) 40 units from B and 70 units from C.
In the Malthusian model, the population growth rate is
A) exogenous. B) positively related to consumption per worker. C) negatively related to consumption per worker. D) assumed to be constant.
In the long run, a monopolistic competitive firm will operate at a price which:
a. is higher than minimum long-run average cost. b. equals minimum long-run average cost. c. equals marginal cost. d. none of these.
Congo, Dem. Rep. and Burundil have per capita GDPs of less than $______.
Fill in the blank(s) with the appropriate word(s).