A recessionary gap exists when
A. real GDP exceeds nominal GDP.
B. nominal GDP exceeds real GDP.
C. real GDP exceeds potential GDP.
D. potential GDP exceeds real GDP.
Answer: D
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The following equations represent the demand and supply for bird feeders
QD = 35 - P QS = -5 + 3P What is the equilibrium price (P) and quantity (Q - in thousands) of bird feeders? A) P = $35; Q = 20 thousand B) P = $5; Q = 30 thousand C) P = $10; Q = 25 thousand D) P = $20; Q = 20 thousand
How are the prices of various goods and services determined for the Consumer Price Index (CPI)?
a. By an extensive annual household survey b. By an extensive monthly survey of stores, apartments, and owner-occupied homes c. By an extensive annual survey of stores, apartments, and owner-occupied homes d. By an extensive monthly household survey e. Through the same survey used to determine the typical market basket