Nominal GDP will definitely increase when
a. prices increase and output increases.
b. prices increase and output decreases.
c. prices decrease and output increases.
d. All of the above are correct.
a
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The four phases of a single business cycle are, in order, the trough, followed by a recovery, then a recession, ending with a peak
a. True b. False Indicate whether the statement is true or false
Which of the following is true?
a. The resources used by special-interest groups to persuade elected officials to create legislation to increase their wealth are productive to society because they increase real output. b. The resources used by special-interest groups to persuade elected officials to create legislation to increase their wealth are unproductive to society because they do not increase real output, and usually end up reducing it. c. Special-interest legislation created through rent-seeking activity usually creates widespread benefits for the rest of the society. d. Special-interest legislation confers concentrated benefits on one group by imposing concentrated costs on another group.
Joe runs a restaurant. He pays his employees $200,000 per year. His ingredients cost him $50,000 per year. Prior to running his restaurant, Joe was a lawyer earning $150,000 per year. What would economists say is Joe's cost of running the restaurant?
A. $150,000 B. $200,000 C. $250,000 D. $400,000
Refer to the data. After the deposit of $10 billion of new currency, the maximum amount by which this commercial banking system can expand the supply of money by lending is:
Answer the question on the basis of the following consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 10 percent. All figures are in billions.
A. $9 billion.
B. $45 billion.
C. $36 billion.
D. $90 billion.