The gross domestic product of a nation measures:
a. the amount of goods and services exported by the nation.
b. the amount of goods and services imported by the nation.
c. total expenditures by the nation's government
d. the size of the nation's economy.
d
You might also like to view...
Which of the following factors would not be considered by a technical analyst when predicting a firm's stock price?
a. a large drop in the stock price yesterday b. a "head and shoulders" pattern in the recent movements of the stock's price c. the likely success of the firm's new product line d. the probable behavior of other buyers and sellers of the stock e. a large jump in the stock's price last week
Tom and Jerry have two tasks to do all day: make dishes and build fences. If Tom spends all day making dishes, he will have make 16 dishes. If he instead devotes his day to building fences, Tom will build 4 fences. If Jerry spends his day making dishes, he will make 14 dishes; if he spends the day building fences, he will build 7 fences. Based on their production possibilities frontiers, Tom and Jerry:
A. can both benefit from trade because absolute advantage exists. B. cannot benefit from trade because Tom has the absolute advantage in both goods. C. could both benefit from trade because comparative advantage exists. D. will not decide to trade because no comparative advantage exists.
In a perfectly competitive market, if price is greater than average total cost at the level of output where marginal cost equals marginal revenue:
A. the firm must be in long-run equilibrium. B. the firm is earning an economic profit greater than zero. C. the firm is earning an economic profit less than zero. D. We cannot determine whether the firm is earning positive or negative profits.
Explain how the static aggregate demand and aggregate supply model gives us misleading results about the price level, particularly with respect to decreases in aggregate demand. Describe how the aggregate demand curve is different in the dynamic model as
compared to the static model. Describe how potential GDP is different in the dynamic model as compared to the static model. What will be an ideal response?