Which of the following is not a correct statement about the growth of real GDP in the U.S. economy?
a. Real GDP in 2009 was almost four times its 1965 level.
b. Growth was steady between 1965 and 2009.
c. Continued growth in real GDP enables the typical American to enjoy greater economic prosperity than his or her parents and grandparents did.
d. The output of goods and services produced grew on average about 3 percent per year between 1965 and 2009.
b
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Tariffs and quotas tend to
a. raise prices domestically but make more goods available b. raise prices domestically and channel more domestic goods into exports c. raise prices domestically and reduce availability of goods d. lower prices domestically but reduce availability of goods e. none of the above
Which is a plausible cause of the movement in Figure 13.1 from point 1 to point 2?
A) a change in expectations that causes a decline in the real interest rate for investments B) a decrease in expected inflation C) the economy's self-correcting mechanism D) the central bank achieves a negative value for the nominal interest rate E) none of the above
If the consumer price index (CPI) rises over a year from 220 to 230, then the inflation rate is 10 percent
a. True b. False Indicate whether the statement is true or false
Suppose a Dell computer that sells for $2,000 in the U.S. is exported to Canada, where it sells for 2,500 Canadian dollars. Further assume that 1.5 Canadian dollars trade for one U.S. dollar in the foreign exchange market. According to the purchasing power parity theory and the price data for this computer, is the Canadian dollar more likely undervalued, properly valued, or overvalued relative to
the U.S. dollar? a. Undervalued b. Properly valued c. Overvalued d. Cannot be determined from the information given