During the U.S. Great Moderation, ________
A) the volatility in the inflation rate declined by 50%
B) the volatility in the rate of growth of real output declined by 33%
C) the economy stabilized from the higher uncertainty of the 1970s
D) all of the above
E) none of the above
D
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If the U.S. population grew at a 0.9 percent during 2006 and real GDP grew at a 4.4 percent during the same period, what was the growth rate of real GDP per person?
A) 1.6 percent. B) 7.75 percent. C) 3.5 percent. D) 6 percent. E) 0 percent.
Floating exchange rates
A) systematically lead to much larger but less frequent short-run deviations from the absolute PPP. B) systematically lead to much larger and more frequent short-run deviations from the relative PPP. C) systematically lead to much smaller and less frequent short-run deviations from the relative PPP. D) systematically lead to much smaller but more frequent short-run deviations from the relative PPP. E) systematically lead to much smaller and less frequent short-run deviations from the absolute PPP.
In the above figure, suppose the value of the European euro is P1 and U.S. demand for French wine declines. The effect on the franc can be shown by
A) an increase in the value of the euro to P2. B) the excess demand of euro equal to Q3 - Q1. C) the decrease in the value of the euro to P0. D) a shift in the demand for euros from D1 to D0, but no change in the value of the euro.
In practice, money supply and short-term interest rates are determined by the
a. Treasury and Commerce departments. b. Federal Open Market Committee. c. Board of Governors. d. House and Senate.