Comparisons of GDP between developed and underdeveloped countries are often misleading because underdeveloped countries produce
What will be an ideal response?
a greater share of their total production in the household sector, which understates their GDP relative to developed countries
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Suppose the world price of a shirt is $10. If the United States imposes a tariff of $5 a shirt, then the price of a shirt in the
A) world rises to $5. B) United States rises to $15. C) United States falls to $5. D) world rises to $15 E) world falls to $5.
The term "random walk" means that stock prices are fairly predictable
a. True b. False Indicate whether the statement is true or false
Prior to World War II,
a. the growth of real GDP was more stable than has been the case since the war. b. the growth of real GDP was less stable than has been the case since the war. c. unemployment seldom exceeded 4 percent of the labor force. d. double-digit swings in real GDP during a single year were unheard of.
The aggregate supply curve normally
A. slopes downward and to the right due to higher resource prices. B. has a horizontal slope equal to zero. C. is very steep in the lower portion and flatter in the upper portion. D. slopes upward to the right due to short-run fixed costs of production.