The real interest rate equals the nominal interest rate ________ the inflation rate
A) times
B) divided by
C) plus
D) minus
Answer: D
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Aggregate demand and aggregate supply must be combined to determine the price level and the "real" GDP
Indicate whether the statement is true or false
Which of the following is a statement which describes how the world should be?
a. Positive statement b. Normative statement c. Cognitive statement d. Reflective statement
In contrast to the structural deficit, the cyclical deficit reflects
A. Changes in discretionary fiscal policy. B. Fluctuations in economic activity. C. Fiscal policy decisions. D. Changes in the "full-employment" deficit.
Economic growth is:
a. a movement along the production possibilities curve. b. a change in the combination of the economy's outputs. c. an outward shift of the production possibilities curve. d. difficult to determine for any one year.