In Figure 5.1, during the 1980-1990 time periods, real GDP was relatively constant but nominal GDP increased. This can be explained by
A. Lower average price levels.
B. A decrease in production per capita.
C. Inflation.
D. Higher levels of production.
Answer: C
You might also like to view...
According to economic theory, a politician will accept an invitation for another photo opportunity as long as
A) she is paid well. B) he can be sure he will look handsome in the picture. C) the marginal benefit exceeds the marginal cost. D) there are no costs involved.
If the required reserve ratio is 5%, what is the value of the simple deposit multiplier?
A) 0.05 B) 0.20 C) 5 D) 20
Which of the following statements is incorrect?
a. The Federal Reserve Open Market Committee determines fiscal policy actions for the Congress. b. The Board of Governors of the Federal Reserve is appointed, not elected. c. The Federal Reserve System was designed to be independent of the executive branch of the government. d. The chairman of the Board of Governors serves a four-year term. e. The Federal Reserve districts are distributed geographically to serve the particular interests of each region.
Which of the following consumers would most likely be helped by a price ceiling?
a. Because of his low income, Ben can afford to rent an apartment at only $800 per month. b. Because of her significant raise, Juanita can afford a $30,000 car. c. Because of his sizable inheritance, Jacques can add an expensive addition to his home. d. Because of her steady income, Roberta can rent a vacation home in Hawaii.