Can actual real GDP exceed potential GDP?
What will be an ideal response?
Yes, actual real GDP temporarily can exceed potential GDP as the economy nears a business cycle peak.
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Ayanna grows herbs. Last year she grew 2,000 pounds of herbs in a year while using 250 square feet of land and 1 worker. This year she doubled her land to 500 square feet, doubled her workers to 2, and grew 4,500 pounds of herbs
She sells her rare, organic herbs for $50 a pound. She pays her workers $25,000 a year and rents her land for $100 per square foot for a year. These are her only costs. a) What was Ayanna's total cost last year and this year? b) What was Ayanna's average total cost last year and this year? c) Did Ayanna experience economies or diseconomies of scale?
For developing countries, one of the more effective ways to become more developed is
A) to invest in secondary schools. B) to invest more in the military. C) to increase trade barriers. D) to reduce direct foreign investment.
Suppose a consumer has an income of $800 per month and that she spends her entire income each month on beer and bratwurst. The price of a pint of beer is $5, and the price of a bratwurst is $4 . Which of the following combinations of beers and bratwursts represents a point that would lie to the interior of the consumer's budget constraint?
a. 160 beers and 200 bratwursts b. 40 beers and 50 bratwursts c. 80 beers and 100 bratwursts d. 160 beers and 0 bratwursts
In the U.S. the authority to issue currency is held by:
A. the U.S. Mint. B. the U.S. Treasury. C. the Federal Reserve. D. the Office of the Comptroller of the Currency.