Refer to the table above. If the real rate of interest is 2%, then the equilibrium level of GDP will be:





A.  $800 billion

B.  $1000 billion

C.  $1200 billion

D.  $1400 billion


C.  $1200 billion

Economics

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Which of the following pairs of goods would most likely exhibit a cross price elasticity of -1.8?

a. orange juice and grapefruit juice b. coffee and tea c. a bagel and cream cheese d. a van and a sport utility vehicle

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A decrease in the capital stock would be expected to

a. decrease the labor force. b. increase the level of output. c. decrease real GDP per capita. d. increase real GDP per capita.

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The classic example of a detrimental externality is

A. education. B. pollution. C. discovery of an AIDS vaccine. D. Mrs. Lewis’ prize-winning rose garden.

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