If the growth rate of real GDP and the rate of inflation in an economy are 2% and 1% respectively, the growth rate of nominal GDP in the economy must be:
A) 3%. B) 1%. C) 5%. D) 2%.
A
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McDonalds and many supermarkets offer vending machines in their stores that rent new movie releases for as low as $1.00 per day provided that they are returned in 24 hours before incurring a late fee
How can Netflix and Blockbuster compete against this type of service? Or is their something else going on there that doesn't first meet the eye?
If the stock market booms, then
a. aggregate demand increases, which the Fed could offset by purchasing bonds. b. aggregate supply increases, which the Fed could offset by selling bonds. c. aggregate demand increases, which the Fed could offset by selling bonds. d. aggregate supply increases, which the Fed could offset by purchasing the money supply.
The mainstream view is that macro instability is caused by:
A. erratic growth of the nation's money supply. B. government interference in the economy. C. significant changes in investment spending. D. consumption "booms" and "busts."
A(n) ________ in a firm's scale of production leads to ________ average total cost when there are economies of scale.
A. decrease; no change in B. decrease; lower C. increase; higher D. increase; lower