Real GDP can increase if the
i. quantities of goods and services produced decrease and prices fall by a smaller percentage.
ii. quantities of goods and services produced decrease and prices fall by a larger percentage.
iii. quantities of goods and services produced decrease and prices do not change.
iv. quantities of goods and services produced increase.
A) i and iii B) iii only C) i only D) iv only E) i, ii, and iii
D
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In "closing the gold window" in 1971, President Nixon
a. did both d and e b. did all of the following c. refused to exchange gold for dollars d. forced the dollar to appreciate e. called in all gold circulating domestically
Assume that the central bank purchases government securities in the open market. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real GDP and reserve-related (central bank) transactions in the context of the Three-Sector-Model?
a. Real GDP falls, and reserve-related (central bank) transactions become more negative (or less positive). b. Real GDP falls and reserve-related (central bank) transactions remain the same. c. Real GDP and reserve-related (central bank) transactions remain the same. d. Real GDP rises, and reserve-related (central bank) transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Each of the following took place in the 1930s EXCEPT
A. the collapse of the entire international financial structure. B. a drought that became known as the Dust Bowl wiped out millions of farmers. C. all of the nation's banks were closed in the first week of March 1933. D. the fulfillment of the promise: "two cars in every garage" and "a chicken in every pot".
Which of the following statements is most correct?
A. Money is a means of payment but is not part of wealth. B. Money is wealth but not all wealth is money. C. In order to be considered part of a person's wealth, an asset must have a positive return. D. Wealth is a store of value and a means of payment.