During periods of poor economic performance, real GDP:
A. declines and unemployment rises.
B. declines and unemployment declines.
C. declines but unemployment typically does not change.
D. is unchanged but unemployment rises sharply.
Answer: A
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If in Switzerland in January, 2009 the CPI was 187.4 and in January, 2010 it was 191.1, then the inflation rate in 2010 was
A) 1.9 percent. B) 3.7 percent. C) -1.9 percent. D) unknown without the base period index number. E) unknown without the real prices.
To calculate the growth rate of a variable, you will
A) calculate the percentage change from one time period to the next. B) calculate the difference between the two variables. C) add the ending value to the beginning value. D) divide the increase by the number of time periods.
Which of the following terms refers to the time it takes for the funds relating to fiscal policy to be dispersed to the appropriate agencies to implement the programs?
a. recognition lag b. implementation lag c. legislative lag d. budgetary lag
Which of the following "backs" the value of money in the United States?
A. The gold stored in the Federal Reserve Bank of New York B. The acceptability of it as a medium of exchange C. The willingness of foreign government to hold U.S. dollars D. The size of the budget surplus in the U.S. government