If you wanted to measure whether the output of an economy was increasing or decreasing across time periods, you would use the real GDP data rather than the nominal GDP data because
What will be an ideal response?
real GDP adjusts for changes in the general level of prices, but nominal GDP does not.
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Which of the following is a characteristic of an LDC?
a. All of the answers are correct. b. Lack of entrepreneurs c. Capital flight d. Vicious circle of poverty
A demand curve for a normal good
A. is constructed based on the assumption that income is rising. B. shows the inverse relationship between price and quantity demanded. C. slopes upward and to the right. D. is constructed based on the assumption that an inverse relationship exists between price and income.
If the value of net exports is positive, then
A. exports equal imports. B. exports exceed imports. C. imports exceed exports. D. imports are zero.
For many years, U.S. investment has exceeded savings and government expenditure has exceeded taxes
These imbalances (deficits) have been financed through international ________ by the United States as shown by the surplus on the balance of payments ________ account. A) lending; current B) borrowing; capital and financial C) borrowing; official settlements D) lending; official settlements E) borrowing; current