Which of the following is true?
A) At full employment, aggregate supply is equal to potential GDP.
B) Aggregate supply is another name for potential GDP.
C) Potential GDP decreases as the price level increases.
D) The potential GDP line has a negative slope.
E) Potential GDP increases as the price level increases.
A
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Currently, the United States has an import quota on the amount of sugar that is allowed to be imported into the United States. What would happen to the price of sugar in the United States if the import quota was removed? What would happen to U.S
consumption and U.S. production of sugar?
A manufacturer produces 400 units when the market price is $10 per unit and produces 600 units when the market price is $12 per unit. Using the midpoint method, for this range of prices, the price elasticity of supply is about
a. 0.45. b. 2.0. c. 2.2. d. 200.