If the real GDP of a country is substantially lower than its nominal GDP, the country experiences low inflation and unemployment
a. True
b. False
Indicate whether the statement is true or false
False
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If the percentage change in quantity is equal to the percentage in price, demand is said to be unit elastic
a. True b. False Indicate whether the statement is true or false
When economy-wide business activities are increasing, they are referred to as
A. expansions. B. contractions. C. corrections. D. anti-cycles.
An industry which has a 4-firm concentration ratio near 100 would best be described as
A. oligopoly, or a monopoly, depending on the size of the biggest firm. B. a monopoly. C. perfect competition. D. monopolistic competition.
Suppose there is no inflation, and the current interest rate is 4% per year. Erin plans to open a savings account and deposit $100 annually for the next 5 years. She plans to leave this money untouched for 10 more years. At the end of the period, the balance of her savings account will be
A) 2500(1.045 - 1). B) 2000(1.0415-1). C) 2000(1.045 - 1)(1.04)10. D) 2500(1.045 - 1)(1.04)10.