GNI and PPP data are useful because they provide a dynamic analysis of economic development.

a. true
b. false


Answer: b. false

Economics

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The total amount of producer surplus in a market is equal to the area above the market supply curve and below the market price

Indicate whether the statement is true or false

Economics

Suppose, at a given federal funds rate, there is an excess supply of reserves in the federal funds market

If the Fed wants the federal funds rate to stay at that level, then it should undertake an open market ________ of bonds, everything else held constant. If the Fed does nothing, however, the federal funds rate will ________. A) sale; increase B) purchase; increase C) sale; decrease D) purchase; decrease

Economics

If exports of goods and services are $450 billion, imports of goods and services are $350 billion, unilateral transfers made by U.S. citizens to foreigners are $5 billion, and unilateral transfers made by foreigners to U.S. citizens are $4 billion, then the current account balance will be __________ billion.

A. +$101 B. -$101 C. -$99 D. +$91 E. +$99

Economics

The Consumer Price Index is due for a major overhaul mainly because it is

A. overestimating the annual inflation rate by over 2%. B. overestimating the annual inflation rate by over 1%. C. underestimating the annual inflation rate by under 2%. D. underestimating the annual inflation rate by over 2%.

Economics