The nominal interest rate is approximately equal to the real interest rate minus the inflation rate
Indicate whether the statement is true or false
FALSE
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Suppose that average labor productivity in Country C is $5,000, and that Countries C and E have the same real GDP per capita. Based on the information in the table, what must be the average labor productivity in Country E?CountryPopulation (millions)Share of Population Employed (%)A10060B15055C7550D25045E9540
A. $1,500 B. $6,250 C. $4,500 D. $1,000
Who of the following would be considered a discouraged worker?
A. Marissa has a Ph.D. in physics, but is currently employed full time driving a taxi. B. Anna Marie has been looking for a job every day for the last month, but has not been hired. C. Ray wants to work forty hours per week, but can only find work for twenty hours per week. D. Frank would like to work, but has not looked for work because he believes no jobs are available.
Monetary expansion causes the current account balance to increase in the short run. Discuss. Is the same the case for fiscal expansion?
What will be an ideal response?
How does the federal government avoid the asymmetric information problem associated with providing health care to people over 65 years of age?
A) Health care is standardized and is the same for all people over 65 years of age. B) Health insurers rely on the reputation of the covered individuals. C) Participation in the Medicare program is mandatory for all people over 65 years of age. D) Health information about people enrolled in the Medicare program is publically available.