If the nominal GDP of a country increases by 25 percent in 5 years but real GDP remains more or less stable, it implies that the growth in nominal GDP was due to an increase in _____
a. total fiscal spending
b. the rate of investment
c. the amount of exports
d. the rate of inflation
d
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If the institutions in an economy change from being inclusive to extractive, then in the economy:
A) the returns to entrepreneurship will increase. B) the opportunity cost of entrepreneurship will decrease. C) the number of entrepreneurs will decrease. D) existing entrepreneurs will earn higher profits.
Since the late 1970s, economic growth has
a. occurred at a rapid pace compared to the period 1950-1973 b. improved living standards across the entire population c. maintained approximately constant living standards across the entire population d. improved the living standards of less-skilled workers while highly skilled workers have become worse off e. improved the living standards of highly skilled workers while less-skilled workers have become worse off
A fall in the real exchange rate (appreciation) will decrease the trade balance in the short run and cause a(n) ___ of the total demand curve.
a. downward shift b. increase in the slope c. upward shift d. decrease in the slope
Which of these is an example of economies of scale?
(A) A restaurant charges customers $1 a glass for water that was once provided for free. (B) A ranch increases its profits by expanding from 400 to 800 cattle without buying or renting additional land. (C) An Internet access company charges customers different rates for using the Internet at different times of day. (D) A shoe store finds it can increase profits by hiring high school students who are willing to work for minimum wage.