Potential GDP refers to the level of
A) real GDP in the short run. B) real GDP in the long run.
C) nominal GDP in the long run. D) nominal GDP in the short run.
B
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Suppose unregulated production of pesticides results in an equilibrium price and quantity of $400 and 1,000 tons per day, respectively, and a marginal external cost of $10 a ton
a) If the government were to eliminate the external cost by using taxes, what should the tax equal? b) Would the government action described above affect the quantity of pesticides produced? If yes, how? If no, why not?
The portion of deposits that banks need to hold at the Central Bank is:
(a) The required reserve ratio; (b) The discount rate; (c) The open market operation; (d) The interest rate.
Which of the following individuals would not be included in the labor force?
A. Kit, who has retired and is not looking for work. B. Divy, who is on temporary layoff from General Motors. C. Soraya, a recent college graduate, who does not have a job, but has applied for several in the last week. D. Giles, a physician who chooses to work part-time.
Refer to Figure 2-8. What is the opportunity cost of producing 1 ton of pineapples in Guatemala?
A) 1/2 of a ton of coconuts B) 1 1/3 tons of coconuts C) 2 tons of coconuts D) 180 tons of coconuts