Suppose the real gross domestic product (GDP) equals $100 billion this year and the nominal gross domestic product (GDP) is $200 billion. This implies that the price level has increased by _____
a. $200 billion
b. 50 percent
c. $100 billion
d. 100 percent
e. 200 percent
d
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The elasticities approach and the absorption approach are theories of the balance of trade that emphasize trade in real goods and have little to say about the capital account
Indicate whether the statement is true or false
A venture capital fund wants to invest $1000 in each of one thousand mad scientists
The first scientist applying to the fund is working on the legendary pill that turns water into gasoline, and the second scientist is working on the even more legendary perpetual motion machine. The smart venture capitalist here will A) back the pill and look for 999 other scientists working on the same pill. B) back the machine and look for 999 other scientists working on the same machine. C) look for 500 scientists working on the pill and 500 working on the machine. D) back the pill, the machine, and 998 other different projects.
In the long run, monetary policy can
a. change the form of inflation b. change the type of unemployment c. change the level of unemployment d. stop the flow of currency abroad e. change the rate of inflation
In a free market the quantity demanded will not exceed the quantity supplied of a resource, even if it is undergoing rapid depletion
a. True b. False Indicate whether the statement is true or false