Which of the following is true?
A) When real GDP equals potential GDP, both equal nominal GDP.
B) Nominal GDP fluctuates around real GDP.
C) Real GDP fluctuates around nominal GDP.
D) Potential GDP fluctuates around real GDP.
E) Real GDP fluctuates around potential GDP.
E
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The Taylor rule implies that the Fed should set the federal funds target based on which of the following?
A) the proportionate gap between actual real GDP and a measure of potential real GDP B) the current deviation of the actual inflation rate from the Fed's inflation objective C) an estimated long-run real interest rate D) all of the above
The technology boom that began in the 1990s has helped increase the average real incomes of households in all five U.S. quintiles
Indicate whether the statement is true or false
What helps to explain the remarkable 7.3% growth rate in South Korea between 1960 and 2011?
A) The education of South Korean women B) A radical reduction in foreign imports and a maximization of South Korean exports C) Huge foreign aid from the World Bank D) All of the above. E) None of the above.
The Tragedy of the Commons can be corrected by
a. conducting a cost-benefit analysis. b. assigning property rights to individuals. c. providing government subsidies for the resource. d. making certain everyone in the economy has access to the resource.