Discuss the correct and incorrect economic analysis in the following statement
"If good weather in Hawaii creates a bumper crop of pineapples, the supply of pineapples will increase. This will result in a price decrease, which will then cause the supply of pineapples to decrease."
What will be an ideal response?
The supply of pineapples will increase resulting in a lower equilibrium price and a higher equilibrium quantity but the lower price will not shift the supply curve for pineapples.
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If the economy is producing ________, unemployment is at its natural rate
A) at an unemployment rate of zero B) at an inflation rate of zero C) at potential GDP D) above potential GDP
Gross domestic product is the sum of the purchase price multiplied by the quantity of:
a. goods and services exchanged during the period. b. final goods and services produced domestically during the period. c. goods and services produced domestically during the period minus the depreciation of productive assets. d. final goods and services plus intermediate goods produced domestically during the period.