If real GDP grows faster than nominal GDP, it is a sign that
A) inflation is negative.
B) there is no inflation.
C) there is inflation, but little.
D) there is galloping inflation.
A
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Suppose the economy is producing at the natural rate of output. An open market sale of bonds by the Fed will cause ________ in real GDP in the short run and ________ in inflation in the short run, everything else held constant
A) an increase; an increase B) a decrease; a decrease C) no change; an increase D) no change; a decrease
People generally view leisure
a. as an inferior good b. as a normal good c. as a source of disutility d. as more valuable per unit the more they have of it e. as unrelated to utility maximization
Which of the following is not a barrier to entry?
A. Legal restrictions B. Patents C. Large sunk costs D. Survivor rights
If a budget deficit as a percent of GDP is greater than the growth of real output, the national debt will
a. decrease relative to the size of the economy. b. decrease in nominal terms. c. increase in nominal terms but decrease relative to the size of the economy. d. increase relative to the size of the economy.