If nominal GDP in 2011 is greater than nominal GDP in 2010, the economy's real output of goods and services must have risen
a. True
b. False
Indicate whether the statement is true or false
False
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To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:
A. not change. B. increase. C. decrease. D. either increase or decrease depending on the relative shifts of AD and AS.
When Johanna cut prices in her jewelry store by 20 percent, the dollar value of her sales fell by 20 percent. This indicates that
A. demand was elastic. B. demand was inelastic. C. demand was unit elastic. D. the demand curve was vertical.
When a person smokes a cigarette in his car and throws the butt out of the window, this is a(n)
A) marginal cost. B) external cost. C) average total cost. D) public cost.
Given the underlying demographic changes in our society, we can expect
a. budget surpluses to outnumber budget deficits in the years ahead. b. the number of budget surpluses to be approximately equal to the number of budget deficits in the years ahead. c. budget deficits to outnumber budget surpluses in the years ahead. d. budget deficits one year to be followed by a budget surplus the next so that the budget balances every two years.