In the economy above:
A. the price level is rising faster than nominal GDP.
B. nominal and real GDP are growing at the same rate.
C. the growth of nominal GDP understates the growth of real GDP.
D. the growth of nominal GDP overstates the growth of real GDP.
C. the growth of nominal GDP understates the growth of real GDP.
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Because a monopsony must raise the wage on all labor hired in order to hire more labor,
A) the MCL curve is horizontal at the market wage. B) the MCL curve is negatively sloped. C) MCL = W. D) MCL > W.
Efficiency is achieved
A) when output is being produced at a point inside a production possibilities curve. B) when producers are getting the maximum possible output from the available resources. C) when consumers are able to buy everything that they want. D) when prices of all goods and services go to zero.