A declining parity ratio implies that the:
A. Prices paid by farmers rose faster than the prices that farmers received
B. Prices received by farmers rose faster than the prices that farmers paid
C. Productivity of farmers is declining
D. Prices paid and received by farmers are both falling
A. Prices paid by farmers rose faster than the prices that farmers received
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A nation's technological gains have increased labor productivity and, as a result, the average number of hours worked each week has been falling. How do Gross Domestic Product (GDP) calculations account for this shortening of the average workweek?
A) Real Gross Domestic Product (GDP) does not factor in an increase in leisure time but per capita real Gross Domestic Product (GDP) does. B) Neither real Gross Domestic Product (GDP) nor per capita real Gross Domestic Product (GDP) includes the increase in leisure time that results, so the nation's actual economic growth will be overstated. C) Gains in leisure time are dollar-valued and included in real per capita Gross Domestic Product (GDP) gains. D) Gains in leisure time are not included in Gross Domestic Product (GDP), so any increase in real per capita Gross Domestic Product (GDP) will understate the nation's actual economic growth.
A situation in which output decreases while prices increase is often referred to as:
A. inflation. B. negative economic growth. C. a recession. D. stagflation.
Economic models are of limited use since they cannot be tested empirically with actual data
a. True b. False Indicate whether the statement is true or false
If a dollar invested in the United States yields the same return as a dollar's worth of yen invested in Japan, then it implies that:
a. purchasing power parity exists. b. the foreign exchange market is in equilibrium. c. the dollar/yen exchange rate is fixed. d. interest rate parity exists. e. both the currencies are pegged to a fixed amount of gold.