Recent studies on the effectiveness of fiscal policy tend to suggest that increases in government spending are more effective than tax cuts in stimulating real GDP
a. True
b. False
Indicate whether the statement is true or false
False
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A nation's average annual real GDP growth rate is 6%. Based on the "rule of 72," the approximate number of years that it would take for this nation's real GDP to double is
A. 15 years. B. 12 years. C. 20 years. D. 17 years.
GDP excludes most nonmarket transactions. Therefore, GDP tends to ________.
A. underestimate the rate of inflation in the economy B. overestimate the rate of inflation in the economy C. underestimate the amount of production in the economy D. overestimate the amount of production of the economy
Which of the following statements is true of marginal analysis?
A) Marginal analysis is a tool used in optimization in levels. B) Marginal analysis compares the consequences of doing one more step of something. C) Marginal analysis of alternatives will mostly give an outcome different from optimization in levels. D) Marginal analysis involves the calculation of total net benefits of all the available alternatives.
The key link between the twin deficits involves: a. higher interest rates and a stronger dollar
b. lower interest rates and a stronger dollar. c. higher interest rates and a weaker dollar. d. lower interest rates and larger trade deficits e. higher interest rates leading to more exports.