Use the following table to answer the next question.All figures in the table below are in billions.RGDPC + IExportsImports$500$525$15$1055056015106005951510650630151070066515107507001510If exports increased by $15 billion at each level of real GDP, all other factors constant, then the equilibrium level of real GDP would be
A. $600 billion.
B. $650 billion.
C. $550 billion.
D. $700 billion.
Answer: B
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If the regulator require a natural monopoly set its price equal to its marginal cost, that would ensure
A) an economic profit for the firm. B) zero economic profit for the firm. C) an economic loss for the firm. D) an accounting loss for the firms.
According to the permanent income hypothesis, permanent income is to ________ as transitory income is to ________
A) consumption; saving B) certain; hypothetical C) wealth; gambling D) saving; borrowing
The improvement in the traditional way things are done is the act of
A. research and development. B. collaboration. C. invention. D. innovation.
In the prosperity phase of the business cycle, aggregate demand increased raising the price level and employment. But later, in the aftermath of the prosperity phase, aggregate demand slackened so that the price level and employment fell. People who lost their jobs during this phase are considered to be part of the economy's
a. cyclical unemployment b. structural unemployment c. permanent unemployment d. frictional unemployment e. underemployment