GDP expressed in constant, or unchanging, prices is called -

In the above figure, what are the long-run equilibrium price level and real GDP?

A) 130 and $11.5 trillion B) 120 and $11.5 trillion C) 120 and $12 trillion D) 130 and $12 trillion

Assume that the production technology required to produce goods X and Y is very similar. If a firm that is producing good X notices that the market price of good Y is rising, it will:

A. intensify its production of good X. B. shift into producing good Y. C. charge a higher price for good X. D. anticipate a price increase for good X.