If potential GDP is $400 billion and there is a negative GDP gap of $15 billion, real GDP is:

If the elasticity of demand coefficient for a good is one-sixth (in absolute terms), we know:

a. that for every 1% increase in quantity, there will be a 6% increase in price. b. that for every 1% increase in quantity, there will be a 6% decrease in price. c. that for every 6% increase in quantity, there will be a 1% increase in price. d. that for every 6% increase in quantity, there will be a 1% decrease in price.

Figure 36-3 ? Which of the situations illustrated in Figure 36-3 shows the effects of a currency appreciation leading to a recession?

A. 1 B. 2 C. 3 D. 4