Which of the following is a true statement about real and nominal GDP?
A) If nominal GDP increases from one year to the next, we know that production of goods and services has risen.
B) Nominal GDP is a better measure than real GDP in comparing changes in the production of goods and service year after year.
C) Increases in average prices do not affect the calculation of nominal GDP.
D) If real GDP increases from one year to the next, we know that production of goods and services has risen.
Answer: D
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If real GDP increases by 6 percent and at the same time the population increases by 2 percent, then real GDP per person grows by
A) 3 percent. B) 6 percent. C) 8 percent. D) 4 percent. E) 2 percent.
When Zane deposits $20,000 cash in his checkable deposit at the Citicorp and the Citicorp's desired reserves increase by $5,000, the desired reserve ratio is
A) 25 percent. B) 75 percent. C) 5 percent. D) 20 percent. E) $5,000.
A firm has an average total cost of $50. If it sells 20 units of its product at $80 each, what is its profit?
A) $30 B) $600 C) $1,000 D) $1,600
Which of the following have hurt those at the low end of the income distribution and helped those at the high end?
a. economic forces b. technological change c. immigration d. all of the above