What can economists conclude if they observe an increase in real GDP?
A) The price level must have fallen.
B) The real output of final goods and services must have risen.
C) National welfare must have risen.
D) Nominal GDP must have risen.
E) All of the above.
B
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Refer to Table 13-1. What portion of the marginal revenue of the 4th unit is due to the output effect and what portion is due to the price effect?
A) output effect = -$0.50; price effect = $5.00 B) output effect = $24.00; price effect = $19.50 C) output effect = $6.00; price effect = -$1.50 D) output effect = $6.50; price effect = $2.00
Assume that the adoption of a new technology costing $8 per year lowers the marginal cost of producing Good X from $7 to $3 . The firm will adopt the new technology if it expects annual profit to increase from $14 to $18
Indicate whether the statement is true or false
In 2009, we had a current account ________ and a capital account _______.
A. surplus; surplus B. deficit; deficit C. deficit; surplus D. surplus; deficit
Which is the most accurate statement?
A. The Japanese and Chinese bear most of the blame for our huge trade deficit. B. Our trade deficit with China has been rising more rapidly than our trade deficit with Japan. C. Our combined trade deficits with Japan and China now total about $100 billion. D. Most economists agree that the best way to reduce our trade deficit would be to impose high tariffs on our imports from Japan and China.