GDP can be measured in terms of expenditures but not income, since income is subject to taxation
a. True
b. False
Indicate whether the statement is true or false
False
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Keynes's theory of the demand for money is consistent with
A) countercyclical movements in velocity. B) a constant velocity. C) procyclical movements in velocity. D) a relatively stable velocity.
Purchasing power parity exists when domestic currency:
a. maintains a fixed exchange rate with foreign currency. b. is not convertible into foreign currency. c. buys more goods at home than abroad. d. buys as many goods at home as it does abroad. e. appreciates in value against foreign currency.
When real GDP is below natural real GDP, the unemployment rate is
A) rising. B) above the average unemployment rate. C) falling. D) below the average unemployment rate.
There was an extensive black market (illegal market) for many consumer products in the United States during World War II. A likely explanation of the black market is that:
a. the prices of goods were artificially held down by price controls. b. black markets were legal during the war. c. goods were not subject to price controls. d. gasoline rationing greatly restricted civilians from driving to stores.