Suppose two countries have identical growth rates of real GDP and the same initial value of per capita real GDP. We know, then, that
A) living standards may differ in the two countries because we don't know how income is distributed in the countries.
B) economic well being is the same in both countries.
C) living standards in the two countries are probably identical, or very close to each other.
D) life expectancies are the same in both countries.
A
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Which of the following is not a factor in the equation of exchange?
A) Money velocity B) Money supply C) The price level D) Nominal income
Policy makers may not know that the economy is in a recession until six months after the recession starts; this phenomenon is known as the _____
a. implementation lag b. policy coordination problem c. decision-making lag d. recognition lag e. effectiveness lag
Which of the following changes in the exchange rate represents a depreciation of the dollar?
a. 100 yen = $1 to 110 yen = $1 b. 1 yen = $.10 to 1 yen = $.08 c. 1 peso = $10 to 1 peso = $11 d. 200 francs = $10 to 250 francs = $10
Absolute advantage states that a country has an advantage over another if it can produce a good with fewer resources
a. True b. False Indicate whether the statement is true or false