If the growth rate of real GDP rises from 3% to 4% per year, then the number of years required to double real GDP will decrease from
A) 11.2 years to 10.8 years. B) 23.3 years to 17.5 years.
C) 28.0 years to 21.0 years. D) 23.3 years to 20.6 years.
Table 21-1
Year Real GDP (billions of 2000 dollars)
2013 $8,700
2014 8,875
2015 9,000
2016 9,280
B
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The percent increase in the CPI from one year to the next is a measure of the
A) real interest rate. B) inflation rate. C) GDP deflator. D) unemployment rate.
Liquidity preference theory indicates that at lower interest rates
A) investment is greater. B) money demand is greater. C) consumption is greater. D) money supply is greater.
The advantage of a nominal anchor is that it prevents a limitless rise in the
A) national debt. B) nominal interest rate. C) inflation rate. D) unemployment rate.
Increases in labor productivity from improved technology
a) increase the long run supply of labor b) reduce the demand for labor c) reduce real wages d) induce firms to substitute capital for labor e) have no long run effect on total hours worked