In any year, nominal GDP divided by the GDP chain price index equals real GDP
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following statements is NOT true about using per capita real GDP to measure a nation's economic growth?
A) The definition does not indicate how the increase in growth is being disturbed among the nation's population. B) The definition assumes that some of the increase in productivity goes to the poor. C) The definition is not perfect for measuring increases in a nation's productive capacity. D) The definition has understated actual economic growth because it does not take into consideration changes in leisure.
A nation that is a net borrower each year over time will become a ________ nation. A nation that is a net lender each year over time will become a ________ nation
Since the early 1980s, the United States has been a ________ due to the current account ________. A) creditor; debtor; net lender; surpluses B) creditor; debtor; net borrower; deficits C) debtor; creditor; net borrower; deficits D) creditor; debtor; net lender; deficits E) debtor; creditor; net lender; surpluses
Refer to the scenario above. If both firms operate to maximize profits, the:
A) total cost of production is minimized. B) total combined profits are minimized. C) marginal cost of both firms are minimized. D) marginal cost of both firms are maximized.
The current account surplus
A) is a decreasing function of disposable income and an increasing function of the real exchange rate. B) is an increasing function of disposable income and an increasing function of the real exchange rate. C) is an increasing function of disposable income and a decreasing function of the real exchange rate. D) is a decreasing function of disposable income and a decreasing function of the real exchange rate. E) is an increasing function of disposable income and a decreasing function of aggregate demand.