To calculate the time required for real GDP to double, we _____
a. divide the annual growth rate by 72
b. divide 72 by nominal GDP
c. divide real output by 72
d. divide 72 by the annual growth rate
e. multiply real GDP by 72
d
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The Fed increases the quantity of money to counteract
A) a federal budget surplus. B) an inflationary ga
If the nominal interest rate is held constant, a higher inflation rate tends to
A) reduce the real interest rate. B) increase the real interest rate. C) leave the real interest rate unchanged. D) have no effect on the savings decisions of households.
Which of the following would shift the LM curve?
A) an increase in the tax rate B) an increase in the real money supply C) a reduction in business confidence D) All of these.
Which of the following is an example of an ordering cost for goods held in inventory?
A) the cost of storage B) the costs of securing the inventory C) the opportunity cost of using funds to finance the inventory D) the cost of the paperwork necessary to pay for each order