What is the importance of measuring per capita GDP?
When examining GDP as a crude welfare measure, an adjustment must be made for population change. If population growth is not taken into account, we can be misled by changes in real GDP values. If the population growth rates exceed the growth rate in real GDP, real GDP per capita will actually decline even though real GDP is increasing.
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In the above figure, if the price is $2, then the total consumer surplus is
A) triangle abc. B) triangle cef. C) trapezoid adec. D) trapezoid bdfc.
The growth of the subprime mortgage market led to
A) increased demand for houses and helped fuel the boom in housing prices. B) a decline in the housing industry because of higher default risk. C) a decrease in home ownership as investors chose other assets over housing. D) decreased demand for houses as the less credit-worthy borrowers could not obtain residential mortgages.
In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, an increase in the reserve requirement ________ the ________ for reserves and causes the federal funds interest rate to
rise, everything else held constant. A) decreases; demand B) increases; demand C) increases; supply D) decreases; supply
What contributed to the United States recession of 2007-2009?
a. High Federal budget deficit b. Deflation in commodity prices and reduction in consumer saving c. Bank failure, panic among investors, and lack of confidence in paper currency d. Stock market collapse, drop in real estate values, and a drop in consumer spending