Suppose that an economy's output does not change from one year to the next, but the price level doubles. What happens to real GDP?
A.
Real GDP doubles
B.
Real GDP is halved
C.
Real GDP doesn't change
D.
There is not enough information to determine what happens to real GDP
C.
Real GDP doesn't change
Economics
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For an oligopoly, when the quantity effect outweighs the price effect, the typical firm may find it optimal to:
A. expect firms will enter the industry. B. collude. C. increase output. D. decrease output.
Economics
For an oligopoly, when the quantity effect does not outweigh the price effect, the firm:
A. has an incentive to increase output. B. has no incentive to decrease output. C. has no incentive to increase output. D. None of these statements is true.
Economics