The level of real GDP in the long run is

A) called potential GDP.
B) affected by changes in the price level.
C) determined solely by aggregate demand.
D) the same as the level of nominal GDP in the long run.


Answer: A

Economics

You might also like to view...

Intel wants to attract the most productive and knowledgeable workers. To achieve this goal it could pay ________ wage

A) a Lucas wedge B) a minimum C) an efficiency D) an equilibrium E) a nominal

Economics

Would you expect the income elasticity of demand for Cadillacs to be positive or negative? Why is this true?

What will be an ideal response?

Economics

A goldsmith has 100 gold coins in his safe and 100 receipts circulating. How much are his outstanding loans?

What will be an ideal response?

Economics

One reason the Medicare system costs so much is

A) the amount of medical services is determined by the equilibrium of supply and demand. B) the supply of medical services does not respond to price changes. C) supply and demand analysis does not apply. D) beneficiaries are entitled to receive services for which the per-unit cost exceeds their own personal out-of-pocket payment.

Economics