As the price of a good rises:
A. government regulation becomes more justified.
B. firms generally increase the supply of the good.
C. firms generally decrease the supply of the good.
D. more firms can cover their opportunity cost of producing the good.
Answer: D
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If real GDP is $13,500 billion and aggregate hours are 110 billion, labor productivity equals
A) $6.75 per hour. B) $104 per hour. C) $123 per hour. D) $675 per hour.
As the price of an existing bond increases,
A. The current yield decreases. B. There is increased risk that the U.S. Treasury will default on the bond. C. The coupon rate decreases. D. The par value decreases.
The International Monetary Fund was created
A) in 1945 by the Bretton Woods Agreement. B) to collect money from member countries that were running balance of payments deficits. C) in 1971 when President Richard Nixon signed the Bretton Woods Agreement. D) in the aftermath of World War II to help nations move off of the gold standard.
In the long run, a higher government deficit does NOT affect equilibrium real Gross Domestic Product (GDP), so that continuous increases in the government deficit will
A. reduce the price level. B. lead to greater tax revenues. C. increase the unemployment rate. D. reduce spending on privately provided goods and services.