Economic growth will
a. reduce the future real GDP of an economy.
b. expand the production possibilities of an economy.
c. increase an economy's nominal income, but not its real income.
d. increase real output, but the real income level of the country will decline.
B
You might also like to view...
Assume that the dollar price of a basket of goods in the U.S. is $3 and the dollar price of a basket of goods in China is $5. On the other hand, the yuan price of the basket in the U.S. is 20 yuan
Given this information, the yuan price of the Chinese basket is: A) 30.50 yuan. B) 33.33 yuan C) 105.50 yuan D) 26.50 yuan.
Refer to Figure 3-8. The graph in this figure illustrates an initial competitive equilibrium in the market for motorcycles at the intersection of D1 and S2 (point B)
If there is an increase in number of companies producing motorcycles and a decrease in income (assume motorcycles are a normal good), the equilibrium could move to which point? A) A B) B C) C D) E
If consumption expenditures fall, then in the short run
a. inflation and unemployment rise. b. inflation rises and unemployment falls. c. inflation falls and unemployment rises. d. inflation and unemployment fall.
A person who is unemployed because of a mismatch between the person's skills and current employment requirements is experiencing
A. cyclical unemployment. B. frictional unemployment. C. seasonal unemployment. D. structural unemployment.