If the quantity of real GDP supplied equals the quantity of real GDP demanded, then
A) nominal GDP must equal real GDP.
B) real GDP must equal potential GDP.
C) real GDP must be greater than potential GDP.
D) real GDP might be greater than, equal to, or less than potential GDP.
E) real GDP must be less than potential GDP.
D
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Refer to Figure 9.2. A movement from point a to point d could be caused by a simultaneous ________ and ________
A) decrease in taxes; massive crop failure B) increase in government spending; decrease in the price of oil C) increase in taxes; increase in the price of oil D) decrease in the money supply; decrease in government spending
The demand curve in the figure above illustrates a product whose demand has a price elasticity of demand equal to
A) zero at all prices. B) infinity. C) one at all prices. D) a different amount at different prices.