Author Question: Suppose that during 2005, the actual real GDP of Chile was 3.5 billion pesos at the same time the ... (Read 84 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?

The lipid bilayer is made of phospholipids. They are arranged in a double layer because one of their ends is attracted to water while the other is repelled by water.

Did you know?

More than 4.4billion prescriptions were dispensed within the United States in 2016.

Did you know?

The first war in which wide-scale use of anesthetics occurred was the Civil War, and 80% of all wounds were in the extremities.

Did you know?

If all the neurons in the human body were lined up, they would stretch more than 600 miles.

Did you know?

Individuals are never “cured” of addictions. Instead, they learn how to manage their disease to lead healthy, balanced lives.

For a complete list of videos, visit our video library