In long-run macroeconomic equilibrium
A) real GDP equals potential GDP.
B) the price level is fixed and aggregate demand determines real GDP.
C) real GDP and the price level are determined by short-run aggregate supply and aggregate demand and long-run aggregate supply is irrelevant.
D) real GDP is less than potential GDP.
A
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A specified maximum amount of the good that may be imported in a given period of time is a
A) dumping limit. B) tariff. C) quota. D) sanction. E) forcible limit.
Consider the change in the price of a book depicted in the above figure. The original budget line is BC. The new budget line is BD. As a result of this price change, the substitution effect can be represented by a movement from
A) point A to point E. B) point A to point G. C) point F to point G. D) point A to point F.