Explain how GNP differs from GDP
GNP includes income from a nation's permanent residents that are abroad, but excludes income of foreign nationals that are located within the nation.
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When marginal cost is positive, total cost is ________ as output increases
A) increasing B) decreasing C) constant D) negative E) undefined
An unregulated paint factory that pollutes a river results in ______ and _____
A. overproduction; a price that exceeds the marginal benefit from the good B. underproduction; a price that equals the marginal benefit from the good C. the efficient quantity produced; a marginal benefit equal to the mar-ginal social cost D. an inefficient quantity produced; a marginal benefit below the mar-ginal social cost
If the utilization rates of capital and labor are procyclical, then
A) output will rise in recessions and decline in expansions. B) measured productivity will be constant. C) the Solow residual will be procyclical. D) prices will be countercyclical.
How do RBC theorists answer the objection that there have been few examples of large and easily measurable real shocks to the U.S. economy in recent decades?
What will be an ideal response?