The table above shows the transaction in Pinkland last year:
a) Calculate Pinkland's GDP.
b) What approach did you use to make this calculation?
a) GDP = C + I + G + (X - M) = $120 + $30 + $50 + ($30 - $40 ) = $190 million.
b) The expenditure approach is used, which measures GDP as C + I + G + (X - M).
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Are Bitcoins Money?
a. yes b. no
The "solvency condition" states that the debt-GDP ratio will rise continuously so long as
A) the real GDP growth rate exceeds the real interest rate. B) the real interest rate exceeds the real GDP growth rate. C) the real interest rate exceeds the nominal interest rate. D) the nominal interest rate exceeds the cost of borrowing.
If the price of a good increases by 10 percent, its quantity demanded drops by 50 percent. The price elasticity of demand is:
A. 1.0 B. 0.2 C. 5.0 D. 2.0
A tax system in which the tax rate on everyone's first $10,000 of income is 10 percent, the tax rate on everyone's second $10,000 of income is 15 percent, and the tax rate on all income over $20,000 is 25 percent is a(n):
A. proportional tax. B. equitable tax. C. progressive tax. D. unit tax.