Which of the following could cause nominal GDP to increase next year, but real GDP to decrease?
A) The price level rises and the quantity of final goods and services produced rises.
B) The price level rises and the quantity of final goods and services produced falls.
C) The price level falls and the quantity of final goods and services produced rises.
D) The price level falls and the quantity of final goods and services produced falls.
Answer: B
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Why is the distinction between long run and short run less important in monopoly markets?
What will be an ideal response?
Externalities between two firms can be "internalized" if: I. The two firms merge. II. Bargaining costs are zero. III. The externalities affect each firm equally. IV. Marginal costs for both firms are constant. Which statement(s) correctly complete the sentence?
a. Only II b. All except III c. I and II, but not III and IV d. I and IV, but not II and III