If real GDP declines in a given year, nominal GDP ________.
A. must also be increasing
B. may either rise or fall
C. must also be declining
D. is likely to remain constant
Answer: B
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Figure 19-2
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Of the graphs in Figure 19-2, which one shows the effects on the exchange rate of an expansion in Japan?
A. 1 B. 2 C. 3 D. 4
With regard to the characteristics of production indifference curves, which of the following statements is/are NOT true?
A. Higher curves correspond to larger outputs. B. An indifference curve will generally have a negative slope. C. An indifference curve is typically assumed to curve inward toward the origin near its middle. D. All of the responses are true for production indifference curves.
Capital saving nonneutral technical progress allows a firm to
A) produce more output with the same inputs. B) use less capital and the same amount of other inputs to produce the same level of output. C) use more capital to produce the same level of output. D) use less capital and more of other inputs to produce the same level of output.
If you were a Keynesian economist, you would
a. believe that saving is always detrimental to our economic health b. believe that increased saving always leads to lower national income0 c. believe that increased investment is undesirable d. see economic trouble ahead if saving increases unattended by a complementary increase in intended investment e. actively try to achieve the paradox of thrift for our national economy