Suppose that Year 2 is the base year. What is the growth rate of GDP?
A) 44.4%
B) 58%
C) 67.5%
D) 120%
A
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If net exports is negative, it must be the case that ________.
A. more goods are being exported than imported B. the value of goods, services, and resources exported is less than the value imported C. more goods are being imported than exported D. the value of goods, services, and resources imported is less than the value exported
A government policymaker suggests "Double the money supply and U.S. citizens' real incomes will double." In the long run, is this policy advice correct?
What will be an ideal response?
Some economists believe that the behavior of unemployment in Europe and in the United States during the 1980s and 1990s
A) was the same because both markets experienced adverse labor market shocks. B) differed because the real wage in Europe was rigid. C) was the same because the real wage in Europe and the United States moved together. D) differed because the United States experienced adverse labor market shocks but Europe did not.
If your bank receives a demand deposit of $4,000 and the legal reserve requirement is 20 percent, then it can make additional loans of
a. $800 b. $3,200 c. $4,000 d. $16,000 e. $20,000