During the business cycle,
A) real GDP fluctuates around nominal GDP.
B) nominal GDP fluctuates around real GDP.
C) real GDP fluctuates around its trend.
D) trend GDP fluctuates around real GDP.
E) real GDP falls after the trough.
C
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Crest Toothpaste offers new whitening toothpaste one year, a new gel swirl design the next year, and an improved cleaning formula the year after. Crest Toothpaste does this because it is
A) a monopoly trying to decrease its costs. B) a perfectly competitive firm trying to increase its price. C) a monopolistically competitive firm trying to maintain its economic profit. D) driving its competitors out of business. E) a perfectly competitive firm trying to increase its costs so it can increase its price.
Special interests have an incentive to become informed about a policy from which they could receive concentrated benefits
Since other voters remain rationally ignorant of the policy, the special interests will have considerable influence in the legislature. Will special interests receive everything they want from the legislature? Why or why not? How will the legislature determine what the special interests will receive?