If the current Real GDP is less than Natural Real GDP, then the economy is
A) in long-run equilibrium.
B) in a recessionary gap.
C) in an inflationary gap.
D) possibly in short-run equilibrium.
E) b and d
E
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The present value of $500,000 in 4 years at 7 percent interest is approximately:
A. $381,448. B. $655,398. C. $344,682. D. None of these statements is true.
When a Nash equilibrium is reached:
A. the outcome will only change if the "lead" player changes his strategy. B. no one has an incentive to break the equilibrium by changing his strategy. C. it must be true that all players have a dominant strategy. D. None of these statements is true.
The primary factor that caused some economists to lose their faith in the Keynesian approach to macroeconomic policy was
A. theoretical proof that Keynes's ideas were invalid. B. the high levels of unemployment that occurred during the Great Depression. C. the presence of both high unemployment and high inflation during the 1970s. D. evidence that Keynes's ideas were useful during economic recessions, but not during economic booms.
The population growth rate in IACs (industrially advanced countries) in 2000-2010 averaged 0.7% per year. This compares to what percentage growth per year in low-income DVCs (developing countries)?
A. 1.1% B. 2.1% C. 4.0% D. 0.4%