Suppose real GDP is $14 trillion and potential real GDP is $14.4 trillion. An increase in government purchases of $400 billion would cause real GDP to ________ potential real GDP (assuming a constant price level)
A) equal
B) be less than
C) be more than
D) There is insufficient information given here to draw a conclusion.
Answer: C
Economics
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____ yields the same results as the theory of perfect competition, but requires substantially fewer assumptions than the perfectly competitive model
a. Baumol's sales maximization hypothesis b. The Pareto optimality condition c. The Cournot model d. The theory of contestable markets e. none of the above
Economics
Profit-maximizing level of output
A. is OR.
B. is OS.
C. is OT.
D. None of the choices are correct.
Economics