If prices are rising on average, then
A) real GDP will always be equal to nominal GDP.
B) real GDP will be greater than nominal GDP in the years after the base year.
C) real GDP will be less than nominal GDP in the years before the base year.
D) real GDP will be greater than nominal GDP in the years before the base year.
Answer: D
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If actual output equals potential output, unusually slow potential output growth would tend to result in:
A. an output gap. B. a recessionary gap. C. a recession. D. an expansion.
Where Y is GDP, C is consumption, I is investment, (G ) is government spending, (T ) is net taxes, and there is no international trade, public saving equals:
A. T - G. B. Y + T - G. C. Y - C - T. D. Y - T - C.
The standard financial institution confirmation request used by the auditors is a means of obtaining documentary evidence about both assets and liabilities.
a. true b. false
Suppose there is a simultaneous increase in the demand for rice and increase in the supply of rice. Which of the following will occur as a result of these simultaneous events?
A. The market clearing price may rise, fall, or stay the same, but the equilibrium quantity will rise. B. The market clearing price will fall, but the equilibrium quantity will rise. C. Both the market clearing price and equilibrium quantity will rise. D. The market clearing price will fall, but the equilibrium quantity may rise, fall, or stay the same.