If real GDP has increased, which of the following statements is always true?
A) Nominal GDP has increased.
B) Output has increased.
C) Prices have remained the same.
D) Output might have decreased if prices have risen enough.
B
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Suppose that the free market exchange rate for the dollar is 115 yen, but the U.S. and Japanese governments want it to be 120 yen/dollar. What can the governments do? Illustrate your answer with a graph
What will be an ideal response?
Marginal utility measures the
A) total utility from consumption. B) additional utility from an additional unit of consumption. C) average utility from an additional unit of consumption. D) additional cost of an additional unit of consumption.
Holding other factors constant, the implementation of a federal job retraining program would likely
A) reduce cyclical unemployment and the natural rate of unemployment. B) reduce structural unemployment and the natural rate of unemployment. C) reduce frictional unemployment and the natural rate of unemployment. D) increase the natural rate of unemployment.
Consider two goods X and Y available for consumption. Assume that the price of X changes while the price of Y remains fixed. For these two goods, the price-consumption curve illustrates the
A) relationship between the price of X and consumption of Y. B) utility-maximizing combinations of X and Y for each price of X. C) relationship between the price of Y and the consumption of X. D) utility-maximizing combinations of X and Y for each quantity of X.