Will's Franks originally sold hotdogs and soft drinks from a cart located in front of City Hall. Then Will purchased another hotdog cart and hired someone to sell hotdogs and soft drinks near the high school. Both locations have been successful. When
Will's Franks expanded to two locations, which of the following did NOT occur?
A) Will's production function changed.
B) Production increased.
C) The company increased the inputs it employs.
D) The firm employed additional capital.
Answer: A
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Compared to the severe recession of 1981-1982, the growth of real GDP during the first two years of recovery from the 2008-2009 recession was
a. much more rapid and the unemployment rate fell by a smaller amount after the more recent recession. b. slower and the unemployment rate fell by a smaller amount after the more recent recession. c. more rapid but the unemployment rate fell by a smaller amount after the more recent recession. d. similar and the decline in the rate of unemployment was almost identical during the recovery from each of these recessions.
According to the classical dichotomy, when the money supply doubles which of the following doubles?
a. the price level and nominal GDP b. the price level and real GDP c. only real GDP d. only the price level