Refer to the data. Real GDP for year 5 is:
Assume an economy that makes only one product and that year 3 is the base year. Output and price data for a five-year period are as follows. Answer the question on the basis of these data.
A. $160.
B. $49.
C. $40.
D. $64.
C. $40.
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In the long run, what is the tradeoff between inflation and unemployment? Explain your answer using Phillips curve analysis
What will be an ideal response?
Which of the following doesn’t characterize the properties of a dollar:
A. changes in value over time. B. can reflect the cost of living in terms of the goods it can purchase. C. has no worth itself, but represents goods we can buy with it. D. it has a fixed value that doesn’t change over time.
Refer to the following figure. The price of capital is $50 per unit:
What is the minimum cost of producing 1,200 units of output?
A. $7,000 B. $8,000 C. $9,000 D. $10,000 E. $11,000
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y2. C. P3 and Y1. D. P2 and Y3.