If the price elasticity of supply for computers is 0.8 in the short run, then in the long run we would expect a price elasticity of supply to be greater than 0.8

If the economy is fully employed, which of the following is true?

A) The price level equals 100. B) Real and nominal GDP are equal. C) Real and potential GDP are equal. D) The unemployment rate is zero. E) Real GDP cannot increase.

A new computer will generate $1,000 in net revenue for a firm during its first year, $500 during its second year, $250 during its third year, and nothing thereafter. If the interest rate is 10 percent (0.10) per year, what is the present value of the computer to the firm? (The first payment will be received at the end of this year.)

a. $1,590.91 b. $1,510.14 c. $1,750.00 d. $1,446.28 e. $1,661.16