If real gross domestic product (GDP) in a particular year is $5,000 trillion and nominal gross domestic product (GDP) in that same year is $4,000 trillion, then the:
a. consumer price index (CPI) is 125
b. economic activity has decreased by 20 percent.
c. GDP price index is 125.
d. GDP price index is 80.
e. economy has grown by 20 percent.
d
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How do banks and financial intermediation support economic growth and development?
(a) By helping businesses secure the funds needed for capital accumulation and technology advancements (b) By assisting customers in buying durable and nondurable goods and services (c) By financing government expenditures when tax revenue falls below planned spending (d) By granting loans to foreign-born individuals to invest in countries outside of the U.S.
All the land in a California valley is owned by one person. The supply of land is fixed and is rented each year to farmers who bid for it in an open auction. Given the rents they must pay, the farmers barely earn subsistence. Sympathy for the poor farmers leads the state to bring in irrigation facilities to raise the productivity of the farms and raise the farmers' income. The most likely outcome
is a. the farmers will prosper. b. the farmers and the landlord will share the new prosperity. c. only the landlord will prosper. d. no one will prosper.
The largest government-run health care system in the world, with 1.4 million employees, is the National Health Service (NHS) in the United Kingdom. The NHS receives its funding primarily from
A) tariffs. B) the World Health Organization. C) income taxes. D) private businesses.
Refer to the given information. If the natural rate of unemployment in Scoob is 5 percent, then:
Answer the question on the basis of the following information about the hypothetical economy of Scoob. All figures are in millions.
A. structural unemployment is about 3 percent.
B. frictional unemployment is about 2 percent.
C. cyclical unemployment is about 2 percent.
D. hidden unemployment is about 5 percent.