Real national income measures:
a) Nominal national income adjusted for population change
b) Nominal national income adjusted for unemployment
c) Nominal national income adjusted for inflation
d) Nominal national income adjusted for exchange rates
Answer: c) Nominal national income adjusted for inflation
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Which of the following is a true statement about the length of recessions and expansions in the United States economy?
A) After 1950, the length of expansions were much less than the length of recessions. B) After 1950, the length of expansions were brief and almost nonexistent. C) After 1950, the length of expansions were much longer than the length of recessions. D) After 1950, the length of expansions equaled the length of recessions.
One major advantage to a fixed exchange rate system is
A) that exchange rate volatility is eliminated. B) that hedging strategies can be implemented. C) that fixed exchange rate nations seldom have credit risk problems. D) that systemic risk is eliminated.
The equilibrium price for a British pound is $1.60. At a price of $1.75 per British pound, there would be excess __________ the dollar and the dollar would __________
A) supply of; appreciate B) supply of; depreciate C) demand for; appreciate D) demand for; depreciate
Which of the following is not a function of money?
a. store of value b. medium of exchange c. standard of quality d. standard of deferred payment