-Use the Above Table

question 49

Multiple Choice

-Use the above table. Assuming constant opportunity costs, the opportunity cost of producing donuts in country Alpha is ________, and the opportunity cost of producing donuts in country Beta is ________.

• A)1 donut; 0.17 donut
• B)1 donut; 6 donuts
• C)10 donuts; 12 pizzas
• D)0.2 pizza; 1.67 donuts

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Definitions:

Real GDP

Gross Domestic Product adjusted for inflation, which reflects the value of all goods and services produced by an economy in a given year in real terms.

Keynesian View

A perspective in economics based on the ideas of John Maynard Keynes, suggesting that aggregate demand is the primary driving force in an economy, and advocating for active government intervention to manage economic cycles.

Macroeconomic Equilibrium

A state where aggregate supply equals aggregate demand, leading to a stable economy.

Say's Law

A principle stating that "supply creates its own demand," implying that production of goods and services will in turn generate enough demand for those goods and services.