The purchasing power parity theory predicts that the exchange rate between two currencies will adjust in the long run to reflect price-level differences between the two currency regions. A given basket of internationally traded goods should therefore sell for similar amounts around the world (net of transportation costs)
Indicate whether the statement is true or false
true
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Suppose Ford Motor Company produced and sold $50 million 2015 model-year pickup trucks during the last half of 2014. How would this affect GPD?
A) 2014 GDP would remain unchanged, and 2015 GDP would rise by $50 million. B) 2014 GDP would rise by $50 million, and 2015 GDP would not be affected. C) Both 2014 and 2015 GDP would rise by $25 million. D) Trick question: 2015 model-year vehicles can't be produced and sold in 2014.
Congress authorized a second Bank of the United States partly in response to:
A) difficulty in funding the American Revolution B) difficulty in funding the War of 1812 C) difficulty in funding the Industrial Revolution D) difficulty in funding the Civil War
The more diversification savers have the:
A. more willing they are to save money, and the more economic growth can occur. B. less willing they are to save money, and the more economic growth can occur. C. more willing they are to save money, and the less economic growth can occur. D. less willing they are to save money, and the less economic growth can occur.
In many less-developed countries, per capita GDP falls even though real GDP rises, because:
a. output grows at a slower rate than the population. b. the GDP measures in developing countries are always inaccurate. c. consumption spending exceeds investment spending. d. these countries face an acute trade deficit. e. prices increase faster than an increase in actual output level.