If the equilibrium level of real GDP per year is greater than the full-employment level of GDP, then
A) the economy is at full employment with no price changes.
B) the economy expands the level of real GDP.
C) an inflationary gap occurs.
D) a recessionary gap occurs.
C
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Do the provisions of the GATT and WTO permit countries to apply their own environmental regulations against imports?
a. No; environmental regulations applying to domestic production and imports need to be negotiated internationally under treaties such as the Kyoto Protocol. b. No; environmental regulations applying only to imports need to be negotiated internationally under treaties such as the Kyoto Agreement. c. Yes; and countries may require stricter environmental regulations for imports than for domestic production. d. Yes; as long as environmental regulations apply uniformly to domestic production and imports.
If an increase in a person's income causes that person to buy more apples, then apples are
a. neutral with respect to price b. complements c. inferior goods d. normal goods e. substitute goods