A country reports that its actual real GDP is greater than its potential GDP. It must be that
A) more workers decided to quit work in order to enjoy leisure time.
B) the excess by which real GDP exceeds potential GDP is only temporary, and eventually real GDP will decrease to be equal to potential GDP.
C) the price level is increasing.
D) an error was made when calculating actual real GDP.
E) None of the above answers is correct because it is impossible for a country's real GDP to exceed its potential GDP.
B
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Economies where goods and services are traded directly for other goods and services are called ________ economies
A) barter B) seigniorage C) direct D) trade
If the price elasticity of demand for a good is 0.25, then a 20 percent decrease in price results in a
a. 0.0625 percent increase in the quantity demanded. b. 4 percent increase in the quantity demanded c. 5 percent increase in the quantity demanded. d. 80 percent increase in the quantity demanded.