Suppose nominal GDP in Mexico decreased by 10% in 2020. Given this information, we know with certainty that
A. real GDP in Mexico decreased in 2020.
B. the aggregate price level in Mexico decreased in 2020.
C. both the aggregate price level AND real GDP decreased in Mexico in 2020.
D. more information is needed to answer this question.
Answer: D
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A country has an aggregate production function of the form: Y = A x K1/3 x H2/3
Which of the following is likely to happen if the capital stock and the efficiency units of labor available to the country increases by 10% over a span of 5 years while the state of technology used in the country remains the same? A) Output will increase by 5%. B) Output will double. C) Output will increase by 10%. D) Output will increase by 1%.
What is monetary policy?
What will be an ideal response?
The income components of GDP include all of the following except
A) wage income. B) foreign income. C) net interest income. D) after-tax profits.
In implementing the Marshall Plan (1948–51),
(a) the United States discouraged European countries from cooperating among themselves to increase trade, as it was felt that economic recovery would be better achieved through competition. (b) the United States, in order to offset the large capital outflow caused by loans and grants made abroad, tried to maintain a balance of payments surplus. (c) the United States offered financial aid to many of the economies in Western Europe devastated by World War II. (d) the U.S. dollar was devalued 30% against other world currencies.