If the economy is operating at a point beyond its institutional production possibilities frontier (institutional PPF), then the economy is
A) producing Natural Real GDP and operating at the natural unemployment rate.
B) producing less than Natural Real GDP and operating below the natural unemployment rate.
C) producing more than Natural Real GDP and operating above the natural unemployment rate.
D) producing more than Natural Real GDP and operating below the natural unemployment rate.
E) none of the above
D
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A surplus means a(n):
A. excess demand for the product at the current price. B. situation where the current market price is too low. C. situation where the quantity demanded exceeds the quantity supplied. D. excess supply of the product at the current price.
Refer to the above graph of the representative firm in monopolistic competition. The long-run equilibrium price and output for this firm will be:
A. B and C. B. A and D. C. A and C. D. B and D.