A recession has traditionally been defined as a period during which
a. nominal GDP declines for two consecutive quarters.
b. nominal GDP declines for four consecutive quarters.
c. real GDP declines for two consecutive quarters.
d. real GDP declines for four consecutive quarters.
c
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Information asymmetries may make it difficult for important sectors of the economy to receive the funding they need to keep the economy growing. In many economies, this problem is addressed with ________
A) prudential regulation B) government-directed credit C) government-backed deposit insurance D) adverse selection
A likely effect of government policies that redistribute income and wealth from the wealthy to the poor is that those policies
a. enhance equality. b. enhance efficiency. c. increase the reward for working hard. d. All of the above are correct.
Suppose that on Monday, a Big Mac cost $3.00 in the United States and 320 Japanese yen in Japan. On Monday, the exchange rate was $1 = 90 yen. According to the purchasing power parity theory, the yen was __________ by approximately __________ percent
A) overvalued; 22 B) undervalued; 40 C) overvalued; 29 D) undervalued; 19 E) overvalued; 19
Nominal income:
A. Reflects the purchasing power of money. B. Is income adjusted for inflation. C. Is the amount of money income, measured in current dollars. D. Is the amount of money income, measured in constant dollars.