Real GDP equals:
A. nominal GDP minus net exports.
B. nominal GDP divided by the GDP deflator.
C. nominal GDP multiplied by the GDP deflator.
D. GDP minus depreciation.
Ans: B. nominal GDP divided by the GDP deflator.
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In the presence of heteroskedasticity, and assuming that the usual least squares assumptions hold, the OLS estimator is
A) efficient. B) BLUE. C) unbiased and consistent. D) unbiased but not consistent.
To correct the budget deficit for inflation, we should
a. multiply the budget deficit by the price deflator for GDP. b. subtract interest payments from tax revenues. c. divide the budget deficit by nominal GDP. d. divide the budget deficit by the consumer price index.
________ is a budget philosophy prior to the Great Depression, aimed at matching annual revenues with outlays, except during war time
a. Annually balanced budget b. Annual surplus budget c. Biennial deficit budget d. Biennially balanced budget
If the index of intra-industry trade is high, products are probably ______, and costs in both nations are ______.
a. identical; different b. differentiated; similar c. identical; similar d. differentiated; different