The level of potential GDP does not change because the factors determining potential output are fixed in the short run
Indicate whether the statement is true or false
TRUE
You might also like to view...
Refer to the given data. At a world price of $5:
Answer the question on the basis of the following data for the hypothetical nations of Alpha and Beta. Q s is domestic quantity supplied and Q d is domestic quantity demanded.
A. Alpha will want to import 50 units of steel.
B. Beta will want to import 60 units of steel.
C. Alpha will want to export 50 units of steel.
D. neither country will want to export steel.
When external costs result from the production of a good,
A. Consumers have an incentive to consume too little. B. Producers and consumers are not affected. C. Both producers and consumers have an incentive to produce and consume too much. D. Producers have an incentive to produce too little.