A business cycle has two turning points, which are the

The difference between nominal and real is

A) nominal is measured in current dollars and real is measured in dollars of a given year. B) real is measured in current dollars and nominal is measured in dollars of a given year. C) nominal is a number stated in dollars and real is stated with an index number. D) real is a number stated in dollars and nominal is stated with an index number. E) both nominal and real are measured with index numbers, only the nominal index is greater than 100 and the real index is less than 100.

The figure above shows the market for coffee. If the government pays the coffee producers a subsidy and production increases to 30 million pounds per day, the market is

A) efficient because the marginal social benefit from the last pound of coffee exceeds its marginal social cost. B) efficient because the total social benefit from coffee exceed the total social cost. C) inefficient because the marginal social benefit from the last pound of coffee exceeds its marginal social cost. D) inefficient because the marginal social cost of the last pound of coffee exceeds its marginal social benefit.