This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Explain the relationship between real GDP and potential GDP during the two phases of the business ... (Read 81 times)

yoroshambo

  • Hero Member
  • *****
  • Posts: 566
on: Jun 29, 2018
Explain the relationship between real GDP and potential GDP during the two phases of the business cycle.
 
  What will be an ideal response?

Question 2

The implicit rental rate for capital is
 
  A) an accounting cost.
  B) part of the firm's normal profit.
  C) an opportunity cost.
  D) a cost that is irrelevant to the business.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Carliemb17

  • Sr. Member
  • ****
  • Posts: 325
Reply #1 on: Jun 29, 2018
Answer to Question 1

During an expansion the level of real GDP eventually surpasses potential GDP, reaches a peak and subsequently falls below potential GDP during a recession eventually reaching a trough.

Answer to Question 2

C


yoroshambo

  • Member
  • Posts: 566
Reply 2 on: Jun 29, 2018
:D TYSM

Sarahjh

  • Member
  • Posts: 370
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

The Centers for Disease Control and Prevention (CDC) was originally known as the Communicable Disease Center, which was formed to fight malaria. It was originally headquartered in Atlanta, Georgia, since the Southern states faced the worst threat from malaria.

Did you know?

Earwax has antimicrobial properties that reduce the viability of bacteria and fungus in the human ear.

Did you know?

It is difficult to obtain enough calcium without consuming milk or other dairy foods.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Inverse Relation Between IQ and Disease. Could this explain the Flynn effect? Inverse Relation Between IQ and Disease. Could this explain the Flynn effect?
The world attempted to deal with Somalia as if it were a real country but painfully learned that Som The world attempted to deal with Somalia as if it were a real country but painfully learned that Som
Kinetic versus Potential Energy Kinetic versus Potential Energy
The relationship between RH and temperature. The relationship between RH and temperature.
The relationship of substrate con- version (as measured by optical density) to the amount of patient ... The relationship of substrate con- version (as measured by optical density) to the amount of patient ...
The relationship between the number of stem cell divisions in the lifetime of a given tissue and the The relationship between the number of stem cell divisions in the lifetime of a given tissue and the
Video: Embryonic development - week 1 and 2

For a complete list of videos, visit our video library