In the classical model, real Gross Domestic Product (GDP) per year is
A. due to supply conditions plus the extent of government intervention in the economy.
B. demand determined.
C. supply determined.
D. determined by supply and demand conditions together.
Answer: C
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A larger labor force will allow the economy to produce more total output
Indicate whether the statement is true or false
The shape of the costs curves may be traced back to
A) the law of diminishing marginal utility. B) the difference between the short run and the long run. C) the law of diminishing marginal returns. D) the fact that all production occurs in the long run.
A basis for the slope of the short-run Phillips curve is that when unemployment is high there are
a. downward pressures on prices and wages. b. downward pressures on prices and upward pressures on wages. c. upward pressures on prices and downward pressures on wages. d. upward pressures on prices and wages.
If a perfectly competitive market had 10,000 identical firms, the market supply curve would be ______ times the quantity supplied by each firm.
a. 5,000 b. 10,000 c. 20,000 d. 100,000