The horizontal segment of the aggregate supply curve
a. shows that real GDP can increase only by affecting the economy's price level
b. shows that real GDP can increase without affecting the economy's price level
c. depicts a positive relationship between real GDP and the price level
d. depicts a negative relationship between real GDP and the price level
e. marks the full-employment level of real GDP
B
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To calculate GDP:
A. add the quantity of all goods and services sold in an economy in a year. B. add the quantity of all final goods and services produced in an economy in a year. C. weight the output of each good and service produced in an economy in a year by its price in that year and then total the result. D. weight the output of each final good and service produced in an economy in a year by its price in that year and then total the result.
If we were to examine the economic record of the former Soviet Union and China during the 1980s, we could reasonably conclude that
A. China was successful and the Soviet Union was not. B. The Soviet Union was successful and China was not. C. Both the Soviet Union and China were successful. D. Neither China nor the Soviet Union were successful.