A researcher finds that for an economy, the nominal GDP in the year 2012 equals the nominal GDP in the year 2013. He also finds that the output of the economy has been the same over the two years. A situation like this is possible only if:
A) the annual inflation rate in the economy is negative.
B) the annual interest rate in the economy is negative.
C) the annual interest rate in the economy is zero percent.
D) the annual inflation rate in the economy is zero percent.
D
You might also like to view...
Answer the following statement(s) true (T) or false (F)
1. When labor and capital are complements in production, a higher wage will cause a firm to use more capital in the long run. 2. When a firm's long-run demand curve for labor is derived, the amount of capital employed is held constant. 3. The substitution effect of a rise in the wage may increase or decrease the firm's employment of labor. 4. Derived demand for an input is the process by which individual firm's demand for labor are aggregated to get the industry demand for labor. 5. The substitution effect on labor always decreases the amount of labor employed when the wage rate goes up.
In his concept of “the invisible hand,” Adam Smith explains that
A. if each person looks out for himself or herself, then chaos will inevitably ensue. B. the pursuit of self-interest promotes economic well-being for society as a whole. C. governmental rule actually results in greater good than is apparent at the time. D. traditional religion is an appropriate guide for human behavior. E. All of the responses are correct.
A pure monopoly may generate economic profits because ________.
A. marginal revenue is constant as sales increase B. of barriers to entry C. of rising average fixed costs D. of advertising
A monopolist can sell 6 units per day at $8 per unit, or 7 units per day at $7 per unit. Its marginal revenue for the seventh unit of output is: a. $49. b. $7
c. $1. d. $-1.