Multiple Choice
In 2015, Adanac produced 20 kilos of apples and 30 kilos of bananas. Both fruits were used exclusively for final consumption and nothing else was produced. In 2015, a kilo of apples sold for $5 while a kilo of bananas sold for $10. Using the same prices, economists estimate that potential GDP is $600. The output gap is
A) + $200.
B) + $400.
C) - $100.
D) + $100.
E) - $200.
Correct Answer:

Verified
Correct Answer:
Verified
Q161: On-the-job training increases human capital.
Q162: Although Tim Horton's is a Canadian corporation,
Q163: A phone could be either an intermediate
Q164: Which word does not describe a phase
Q165: Despite limitations to GDP measurement, economists are
Q167: An economy that experiences two or more
Q168: Once a country's borders are set, the
Q169: Aggregate expenditure is $200. Consumers pay $70
Q170: Disposable income is<br>A) income minus transfers minus
Q171: Which shifts a macro production possibilities frontier