The level of real GDP the economy produces at full employment is
A) never reached in reality.
B) nominal GDP.
C) called the Lucas level.
D) real GDP.
E) potential GDP.
E
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Based on this figure, if the krone exchange rate is fixed at $0.15 dollars per krone, then the krone is: 
A. overvalued B. undervalued C. devalued D. revalued
The supply curve of a perfectly competitive firm in the short run is
A) the portion of the firm's marginal cost curve above the minimum point of the average total cost curve. B) the firm's average variable cost curve. C) the portion of the firm's marginal cost curve above the minimum point of the average variable cost curve. D) the portion of the firm's marginal cost curve below the minimum point of the average variable cost curve.
Over the past decade, a nation's real Gross Domestic Product (GDP) grew at a constant rate of 10 percent per year while its population grew 8 percent annually
Forecasters predict that during the coming decade, real GDP will continue to grow 10 percent annually, but the population growth rate is expected to drop to 6 percent annually. If the forecasters are correct, which of the following will be TRUE? A) The annual rate of growth of per capita real GDP will decline from 2 percent to 1 percent. B) The annual rate of growth of per capita real GDP will increase from 2 percent to 6 percent. C) The annual rate of growth of per capita real GDP will increase from 2 percent to 4 percent. D) The annual rate of growth of per capita real GDP will decline from 4 percent to 2 percent.
Which of the following is not true about the Federal Reserve banks?
A. They serve as bankers' banks. B. They compete with commercial banks in their basic functions. C. Unlike other banks, they are not motivated by profits. D. They are privately owned but government-controlled.