In the figure above, in the short-run macroeconomic equilibrium
A) there is no structural unemployment.
B) real GDP is greater than potential GDP.
C) real GDP equals potential GDP.
D) real GDP is less than potential GDP.
D
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In the above figure, income is $8, the price of a soft drink is $1, and the initial price of a milkshake is $2. If the price of a milkshake decreases to $1, milkshakes are revealed to be
A) an inferior good. B) a normal good. C) less preferred than soft drinks. D) None of the above answers is correct.
A monopolistically competitive firm: a. tries to differentiate its product from the products of competitors
b. faces a perfectly elastic demand curve for its product. c. unlike a perfectly competitive firm, is able to earn positive economic profits in the long run. d. is always a retail establishment.
In the long run, the Fed can change the inflation rate but not the unemployment rate
a. True b. False
Which of the following is true?
a. The GDP gap is the difference between full-employment real GDP and actual real GDP. b. All of the answers are correct. c. We desire economic growth because it increases the nation's standard of living. d. Discouraged workers are a reason critics say the unemployment rate is understated. e. Economic growth is measured by the annual percentage increase in a nation's real GDP.