The sustainable upper limit of real GDP is a level of GDP that is
A) greater than potential GDP, but by how much greater is unknown and controversial.
B) less than potential GDP, but by how much less is unknown and controversial.
C) potential GDP.
D) determined only by what is the full employment equilibrium in the labor market.
E) None of the above answers is correct because there is no sustainable upper limit to real GDP because real GDP can always be increased.
C
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Which one of the countries below announces inflation targets?
A) Japan B) U.S. C) Canada D) Mexico E) Nicaragua
Nominal GDP is
a. also called real GDP. b. a more accurate measure than real GDP. c. real GDP adjusted for changes in the price level. d. GDP measured in current prices.
Price floors cause ______.
a. surpluses b. shortages c. scarcity d. equilibrium
Suppose the U.S. Congress is considering passing an excise tax that would increase the price of a pack of cigarettes by $1.00. What would be the likely effect of this change on the demand and supply of cigarettes? What is likely to happen to cigarette
prices and the quantity consumed if the tax bill is enacted? Please provide the best answer for the statement.