In 2018, Janice Quinn sells a five-year-old car to Used Car, Inc. for $4,000. In the same year, Used Car, Inc. resells the car to Hilda Goner for $4,750. What is the contribution of these transactions to GDP in the year 2015?

Because we cannot observe or measure utility

A) the predictions of marginal utility theory cannot be verified. B) marginal utility theory is incomplete and so its predictions might not be valid. C) marginal utility theory must be derived from assumptions about demand curves because demand curves can be measured. D) None of the above answers are correct.

Starting from short-run equilibrium, wage rates rise. What is the effect on the price level and Real GDP in the short run?

A) The price level rises and Real GDP falls. B) The price level falls and Real GDP rises. C) The price level rises and Real GDP rises. D) The price level falls Real GDP falls.