Nominal GDP has risen faster than real GDP in the last decade because:
a. the price level has increased
b. the price level has decreased.
c. the growth rate of productivity has accelerated.
d. the volume of foreign trade has expanded sharply.
a
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An increase in domestic demand for a product protected by a quota results in an increase in producer surplus for domestic firms, while for a tariff it would result in more imports
Indicate whether the statement is true or false
Which one of the following statements is true?
a. Resources flow from the government to households. b. Resources flow from firms to households. c. Taxes flow from firms to the government. d. Resource payments flow from firms to households e. Imports flow from firms to foreign economies.
A bank is an example of a financial intermediary
a. True b. False Indicate whether the statement is true or false
Your boss, the mayor of a city, thought that she'd come up with a great way to raise city revenue: increase the tax on gasoline in the city! However, she discovered that the city was actually receiving less tax revenue after the gas tax increase than before. Incensed, she declared that the economic policy prescription of taxing goods with inelastic demand must be flawed. Comment on her conclusion.
What will be an ideal response?