Author Question: Suppose that during 2005, the actual real GDP of Chile was 3.5 billion pesos at the same time the ... (Read 80 times)

arivle123

  • Hero Member
  • *****
  • Posts: 569
Suppose that during 2005, the actual real GDP of Chile was 3.5 billion pesos at the same time the potential GDP was 3.4 billion pesos. What sort of equilibrium existed in Chile?
 
  What will be an ideal response?

Question 2

How can managers of natural monopolies exaggerate their costs?
 
  What will be an ideal response?



yuyiding

  • Sr. Member
  • ****
  • Posts: 357
Answer to Question 1

Chile's actual real GDP exceeded its potential GDP, so Chile was in an above full-employment equilibrium with an inflationary ga

Answer to Question 2

By increasing on-the-job luxury items such as sumptuous office suites, limousines, golf competitions at expensive locations, company jets, and other non-necessary expenditures, the managers can exaggerate their costs over what is truly necessary to produce the product.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Children of people with alcoholism are more inclined to drink alcohol or use hard drugs. In fact, they are 400 times more likely to use hard drugs than those who do not have a family history of alcohol addiction.

Did you know?

You should not take more than 1,000 mg of vitamin E per day. Doses above this amount increase the risk of bleeding problems that can lead to a stroke.

Did you know?

Never take aspirin without food because it is likely to irritate your stomach. Never give aspirin to children under age 12. Overdoses of aspirin have the potential to cause deafness.

Did you know?

Signs and symptoms of a drug overdose include losing consciousness, fever or sweating, breathing problems, abnormal pulse, and changes in skin color.

Did you know?

The Romans did not use numerals to indicate fractions but instead used words to indicate parts of a whole.

For a complete list of videos, visit our video library