If the nominal GDP is $12,000 in 2005 and $15,000 in 2006, and if inflation is 10% between these years, then
a. employment fell between 2005 and 2006.
b. real GDP fell between 2005 and 2006.
c. real GDP rose between 2005 and 2006.
d. the economy experienced no growth between these years.
e. everyone is rich now than they were before.
B
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When there is no Ricardo-Barro effect, a government budget surplus ________ the real interest rate because the ________ loanable funds increases
A) lowers; supply of B) lowers; demand for C) raises; supply of D) raises; demand for E) None of the above answers is correct because the real interest rate does not change.
Rational ignorance says that voters will
A) understand the technology before voting on defense. B) vote on issues without having complete information. C) gather information on issues that are not important. D) not vote on issues that they do not understand.
Gross domestic product (GDP) is
a. the total value of all goods and services produced for the marketplace during a given period, within a nation's borders b. the total value of all final goods and services produced for the marketplace during a given period, by a nation's citizens and businesses, both within a nation's borders and abroad c. the total value of all final goods and services produced for the marketplace during a given period, within a nation's borders d. the total value of all goods and services produced for the marketplace during a given period, by a nation's citizens and businesses e. the total value of all goods, services and inputs produced for the marketplace during a given period, within a nation's borders
Rising unemployment and decreased business confidence could be signs that the economy is at the start of a(n):
A. recession. B. boom. C. expansion. D. recovery.