In the second quarter (three-month period) of 2001, U.S. nominal GDP increased but U.S. real GDP declined. We can conclude that:

A. nominal income declined by more than personal income.
B. the price level rose by more than nominal GDP.
C. real wages declined by more than real GDP.
D. the price level fell by more than real GDP.


B. the price level rose by more than nominal GDP.

Economics

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In a perfectly competitive market, a permanent increase in demand initially brings a higher price, economic

A) loss, and entry into the market. B) loss, and exit from the market. C) profit, and entry into the market. D) profit, and exit from the market.

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Which of the following equations describes the government deficit?

A) G + TR + INT - T B) G + TR - INT - T C) G - TR + INT - T D) G - TR - INT - T

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The text points out that since the 1970s, which of the following regions of the United States became a "population magnet?"

a. Midwest b. Northeast c. South d. West e. North

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The U.S. Secretary of the Treasury met with the Japanese Finance Minister to discuss possible cuts in the Japanese discount rate. The likely outcome of currency speculation in response to this news is that

a. the dollar will depreciate. b. the dollar will appreciate. c. the yen will appreciate. d. both the dollar and yen will appreciate.

Economics