When actual real GDP is above natural real GDP, we say that
A) the output gap is positive.
B) the output gap is negative.
C) the output gap has been eliminated.
D) the output gap cannot be calculated.
A
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The figure above shows the U.S. production function. How would an increase in capital be shown in the figure?
A) an upward shift or rotation of the production function B) a downward shift or rotation of the production function C) a movement from point A to point B D) a movement from point C to point B E) None of the above because the effects of an increase in capital cannot be shown in the figure.
The demand schedule or curve confronted by the individual, purely competitive firm is:
A. relatively elastic, that is, the elasticity coefficient is greater than unity. B. perfectly elastic. C. relatively inelastic, that is, the elasticity coefficient is less than unity. D. perfectly inelastic.