A price index can fall from one year to the next:
a. even when nominal GDP falls
b. even when real GDP falls.
c. even when some individual good's prices rise.
d. in any of the above circumstances.
d
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How will the exchange rate (foreign currency per dollar) respond to an increase in the relative rate of productivity growth in the United States in the long run?
A) Exchange rates will rise. B) Exchange rates will be unaffected by changes in the relative rate of productivity growth in the United States, both in the short run and in the long run. C) The exchange rate will be affected in the short run, but not in the long run. D) Exchange rates will fall.
Which of the following factors important in determining our standard of living are not reflected in the Gross Domestic Product?
A. The value of leisure, the quality of our environment, improvements in products quality. B. The value of our imports and exports, the value of leisure. C. The value of our imports, the improvements in product quality.
The 1930s were a period of
a. strong economic expansion and rapid growth of real output. b. high rates of inflation coupled with a low rate of unemployment. c. depressed economic conditions and prolonged high rates of unemployment. d. strong growth of real output even though the general level of prices was declining.
If M1 is $1,200 billion, currency held outside banks is $400 billion, and traveler's checks is $10 billion, then small-denomination time deposits equal
A) $790 billion. B) $390 billion. C) $800 billion. D) $1,190 billion. E) There is not information to answer the question.