If nominal GDP is $12,000 and the GDP deflator is 80, then real GDP is $15,000
a. True
b. False
Indicate whether the statement is true or false
True
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The Fed's two main monetary policy targets are
A) the interest rate and real GDP. B) the money supply and the interest rate. C) the money supply and the inflation rate. D) the inflation rate and real GDP.
If the money supply increases 10-percent, velocity decreases 5-percent, and the price level increases 6-percent, then the change in real GDP is
a. 1. b. 4. c. -1. d. 5.
If a market is contestable, then
A. long-run economic profits are minimal due to inefficiency. B. long-run economic profits are zero. C. short-run and long-run economic profits are zero. D. positive economic profits are maximized due to the efficient production spurred by the threat of entry.
Purchasing-power parity plays a major role in long-run exchange rate movements.
Answer the following statement true (T) or false (F)