Historical note: The demand-pull inflation during the Vietnam War period (late 1960s, early 1970s)
a. resulted mostly from a fall in aggregate supply brought about by the war
b. was precipitated by the rapid oil price increases that made military goods more expensive (fuel for tanks and aircraft)
c. was sparked by the rise in taxes needed to finance the war
d. was caused in part by the increased demand for military goods
e. was fueled by a shift to the left of aggregate demand because people in the armed forces were no longer consumers
D
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Which of the following is true?
A) Real GDP fluctuates around potential GDP. B) Potential GDP fluctuates around real GDP. C) Nominal GDP fluctuates around real GDP. D) Real GDP fluctuates around nominal GDP. E) When real GDP equals potential GDP, both equal nominal GDP.
Mergers between companies producing widely divergent goods is called a
A) conglomerate merger. B) diagonal merger. C) horizontal merger. D) vertical merger.
In 2015, Peelville consumed 30,000 bananas. In 2016, banana consumption rose to 35,000. Calculate the percentage change in banana consumption
A) 11.66% B) 14.28% C) 16.67% D) 22.25%
If total production of goods and services for a given quarter is $2,000 billion (seasonally adjusted), the GDP will be reported at an annual rate of
a. $750 billion. b. $1,500 billion. c. $5,000 billion. d. $8,000 billion.