Which of the following statements best describes the relationship between GDP and standard of living?
a. GDP does not understate or overstate the standard of living.
b. GDP may understate the standard of living.
c. GDP may understate or overstate the standard of living.
d. GDP may understate the standard of living.
c. GDP may understate or overstate the standard of living.
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Agraria specializes in the production of cotton. However, cotton manufacturers in Agraria are expecting the demand for its exports to fall sharply due to growing competition from a neighboring country
Assuming all else equal, which of the following is likely to happen in this case? A) The equilibrium unemployment in Agraria will fall. B) The equilibrium real wage in Agraria will rise. C) Investment expenditure in Agraria will rise. D) Consumption expenditure in Agraria will fall.
What was the crucial factor permitting cotton textile production to take off in New England between 1790 and 1815?
(a) The imposition of high tariff rates (b) A lowering of import tariffs by Britain (c) The blocking of trade with England through the Embargo and the War of 1812 (d) A relaxation of regulations restricting exports of machinery by Britain
When implementing monetary policy, the variable the Federal Reserve watches most closely is the
a. required reserve ratio b. federal funds rate c. long term bond rate d. national debt e. short term corporate bond rate
In periods of generally rising prices,
a. real GDP will grow faster than nominal GDP. b. nominal GDP will grow slower than real GDP. c. real GDP will grow slower than nominal GDP. d. real GDP and nominal GDP will grow at the same rate.