A decrease in real GDP relative to the natural rate of output creates an expansionary gap
a. True
b. False
Indicate whether the statement is true or false
False
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Refer to the above table. Two countries have per capita real GDPs in 2010 of $5000. If country A has a 4 percent growth rate and Country B a 5 percent growth rate, what will the per capita real GDPs of each be in the year 2060?
A) A: $15,000; B: $30,000 B) A: $40,000; B: $60,000 C) A: $35,550; B: $57,500 D) A: $24,000; B: $35,200
The U.S. central bank is the government institution that:
A) monitors financial institutions, controls the money supply, and invests in foreign assets. B) monitors financial institutions, controls the money supply, and sets certain key interest rates. C) monitors financial institutions, controls the money supply, sets certain key interest rates, and decides on political targets. D) controls the money supply and invests in foreign assets.
If Holly's demand for fast food decreases as her income rises, then
a. fast food is a normal good for her b. the law of demand must apply c. fast food is a complementary good d. fast food is an inferior good for her e. fast food is a substitute good
Which of the following would be counted as investment in the national income accounts?
a. the purchase of a newly issued stock b. the purchase of a newly built apartment house c. the purchase of a newly minted coin d. the payment of tuition at a private college