If Coke and Pepsi are close substitutes, then if:
a. Coke raises its price, so will Pepsi.
b. Coke raises its price, it will not lose customers to Pepsi.
c. Pepsi lowers its price, it will not hurt Coke.
d. Pepsi lowers its price, so will Coke.
e. Coke raises its price, some customers will switch to Pepsi.
e
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If nominal GDP of a country increased and real GDP remained unchanged in a particular year, which of the following is most likely to have taken place?
a. Output increased and the price level increased b. Output increased and the price level decreased c. Output remained constant and the price level increased d. Output decreased and the price level decreased e. Output increased and the price level remained constant
If net exports are positive:
A. the equilibrium GDP must be greater than the full-employment GDP. B. imports must exceed exports. C. aggregate expenditures are greater at each level of GDP than when net exports are zero or negative. D. some other component of aggregate expenditures must be negative.