If real GDP increased by 2% and nominal GDP increased by 1%, then output:
a. increased and the price level increased.
b. increased and the price level decreased.
c. decreased and the price level increased.
d. decreased and the price level decreased.
b
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The prices of the products in the World War II POW camps, measured in terms of cigarettes, reflected the products'
A) practicality. B) costs of production. C) scarcity. D) retail prices.
Distinguish between a perfectly competitive firm and a monopolistically competitive firm on the basis of the long-run equilibrium price
What will be an ideal response?
If the quantity of nail polish supplied is represented by the equation QS = -3 + 2P then the corresponding price of nail polish is represented by the equation
A) P = 1.5 - 0.5QS. B) P = 2QS - 6. C) P = 2QS + 6. D) P = 0.5QS + 1.5.
Schumpeter asserts all of the following except
(a) A strong middle class fosters growth in society's entrepreneurial base. (b) Entrepreneurs are the leading force behind technological advancement. (c) Invention and innovation are unnecessary in a growing economy. (d) Secured property rights encourage risk-taking entrepreneurial behaviors.