If there is ongoing inflation in an economy, the value of real GDP will be greater than the value of nominal GDP
a. True
b. False
Indicate whether the statement is true or false
False
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The law of increasing opportunity cost states that
A. as output increases the marginal cost does not change. B. as output increases the marginal cost increases. C. as output decreases the marginal cost increases. D. as output increases the marginal cost decreases.
In the above figure, when the economy is in a long-run equilibrium, the price level will be
A) 90. B) 100. C) 110. D) 120.
The Slutsky equation is a mathematical representation of:
A) a utility function. B) the marginal utility of income. C) a demand curve. D) the income expansion path. E) the substitution and income effects.
Accounting profit is
a. always less than economic profit b. never less than economic profit c. equal to economic profit if a normal profit is earned d. less than economic profit only when implicit costs are greater than explicit costs e. greater than economic profit only when implicit costs are greater than explicit costs