In the short-run, demand-pull inflation increases:
A. Real wages, but in the long run only nominal wages
B. Nominal wages, but in the long run only real wages
C. Real output and the price level, but in the long-run only real output
D. Real output and the price level, but in the long-run only the price level
D. Real output and the price level, but in the long-run only the price level
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Explain why a relative price is an opportunity cost
What will be an ideal response?
Convergence refers to closing the gap in ________ between poorer countries and richer countries
A) real GDP B) the growth rate in real GDP C) real GDP per capita D) the growth rate in real GDP per capita
In a typical year, ________ new firms open in the United States
A) more than 400,000 B) more than 1 million C) approximately 125,000 D) less than 200,000
Refer to Figure 15-10. What is the area that represents producer surplus under a monopoly?
A) the triangle 0P3H B) the rectangle P1P3HF C) the trapezium 0P1FH D) the triangle 0P2E