If nominal GDP is declining, it is necessarily true that Real GDP is also declining
Indicate whether the statement is true or false
True
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In an expansion, federal tax receipts increase proportionally more than real GDP without the need for any government policy. This increase is an example of
A) discretionary monetary policy. B) automatic monetary policy. C) automatic fiscal policy. D) discretionary fiscal policy. E) the effect of deficit spending.
Real-world accuracy of the money multiplier can be affected by:
a. the amount of loans provided by nonbanks. b. the way the public divides its holding of M1 between currency and certificates of deposit. c. the willingness of banks to loan excess reserves. d. all of these.
Which of the following is an example of a produced factor of production?
a. corn that is harvested from a field in Iowa b. workers who are hired at a coal mine in West Virginia c. skills that teachers in Texas acquire through continuing-education classes d. All of the above are correct.
Which of the following is the best explanation of why the law of diminishing returns does not apply in the long run?
A. All factors of production are fixed in the long run. B. The MPP does not change in the long run. C. In the long run, firms can increase the availability of space and equipment to keep up with the increase in variable inputs. D. In the long run, firms have enough time to find the most qualified workers.