Real GDP in a given year is
A) GDP valued in the prices of the base year.
B) GDP valued in the prices of that year.
C) always less than nominal GDP for the same year.
D) GDP adjusted for the value of intermediate goods.
A
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Which statement is true?
A. Most monopolistic competitors are large firms. B. Monopolistic competitors produce goods or services for which there are no close substitutes. C. Monopolistic competitors usually operate at the minimum point of their average total cost curves. D. None of these statements are true.
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Macro AD-AS Model
In Exhibit 14A-4, the self-correction argument is that in the long run, competition:
A. from unemployed workers causes an increase in nominal wages and a leftward shift in SRAS. B. from unemployed workers causes a rightward shift in SRAS. C. among firms for workers increases nominal wages and this causes a leftward shift in SRAS. D. among consumers causes an increase in the CPI and a rightward shift in SRAS.
In the AS/AD model, a contractionary monetary policy:
A. reduces investment but increases aggregate demand. B. increases both investment and aggregate demand. C. increases investment but reduces aggregate demand. D. reduces both investment and aggregate demand.
If the price of British pounds in terms of U.S. dollars is $1.80 per pound, then the price of U.S. dollars in terms of British pounds is
A. £0.556 per dollar. B. £0.90 per dollar. C. £1.80 per dollar. D. £3.60 per dollar.