Author Question: In the short run, real GDP can increase beyond a level consistent with the long-run growth path if ... (Read 90 times)

daltonest1984 · **on:** Jun 29, 2018

In the short run, real GDP can increase beyond a level consistent with the long-run growth path if

A) existing capital and labor are used more intensely.
B) the price level decreases accordingly.
C) we measure in nominal terms instead of real terms.
D) there is an increase in marginal tax rates.

Question 2

Refer to the above figure. What are the price and quantity if this monopolist is required to use average cost pricing?

A) P5, Q1
B) P3, Q3
C) P2, Q1
D) P1, Q4