Real GDP will increase
A) only if the quantity of final goods and services produced rises.
B) if either the price level rises or the quantity of final goods and services produced rises.
C) only if the price level rises.
D) only if the price level falls.
A
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What is the more efficient choice: sending one's child to John Q. Public High School at zero dollar tuition or to Purebred Prep School at several thousand dollars a year?
A) High school, because it's much cheaper. B) Prep school, because it's much higher in quality of instruction. C) Prep school, because what matters most is not what you know, but who you know. D) It depends on the decision makers' own evaluations of cost and benefit.
One reason that a large share of the trade between high-income industrial economies is intraindustry trade is because
A) it is more advantageous than interindustry trade. B) high-income industrial economies produce in the first stage of the product cycle. C) high-income industrial economies have dissimilar resource endowments in absolute terms. D) it allows firms to take advantage of internal economies of scale.