In the short run, real GDP can increase beyond a level consistent with the long-run growth path if
A) existing capital and labor are used more intensely.
B) the price level decreases accordingly.
C) we measure in nominal terms instead of real terms.
D) there is an increase in marginal tax rates.
A
You might also like to view...
How was South Korea able to use infant industry protection successfully to start its car companies, when many countries experience negative results when they use infant industry protection?
a. The protection has never stopped. b. The protection was so small it had no effect on the car companies. c. The protection had a definite end, whether the infant industry grew or did not grow. d. The protection had a large enough subsidy to make companies’ profitable.
Aiden must decide whether or not to go to law school. He knows that he can earn $50,000 per year with his bachelor's degree, but he expects to earn a minimum of $58,000 per year with the law degree. An economist would advise him to
a. take the job that just requires the bachelor's degree. b. go to law school, but only if he can finish within 3 years. c. go to law school. d. consider costs, revenues, and any nonmonetary job considerations he might have also.
In economics, the word "aggregate" refers to
A. an economy as a whole. B. the government. C. how individual households differ from each other. D. the public sector itself.
In long-run equilibrium for a monopolistically competitive firm, economic profit equals zero and thus the outcome is efficient.
Answer the following statement true (T) or false (F)