Nominal GDP is:
A. the sum of all monetary transactions that occur in the economy in a year.
B. the sum of all monetary transactions involving final goods and services that occur in the economy in a year.
C. the amount of production that occurs when the economy is operating at full employment.
D. money GDP adjusted for inflation.
B. the sum of all monetary transactions involving final goods and services that occur in the
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In a graph that illustrates a perfectly competitive firm, marginal revenue is
A) a diagonal line that lies below the firm's demand curve. B) a line that intersects the firm's demand curve from below at its lowest point. C) the same as the firm's demand curve. D) a line that intersects the firm's average total cost curve from below at its lowest point.
If a person completely smooths consumption over his lifetime, then consumption is best represented by which of the following?
A) wealth / the number of years the person expects to live B) lifetime income / the number of years the person expects to work C) (wealth + lifetime income) / the number of years the person expects to live D) (wealth + lifetime income) / the number of years the person expects to work
Aggressive policy measures taken by the monetary authority during the 2007-2008 financial crisis in the United States resulted in:
a. avoidance of a recession caused by a tight credit market. b. almost no transmission of the monetary stimulus to market rates of interest, increased lending, and expansion of GDP. c. lower rates of interest and increased investment activity. d. an increase of real GDP and a fall in the core unemployment rate.
A currency board
A. monitors conditions imposed by the International Monetary Fund (IMF) when it makes a loan to a country. B. establishes a fixed exchange rate by holding only foreign-currency assets and exchanging foreign currency for domestic currency. C. was a key mechanism in the process of European Monetary Union D. establishes the equivalent of a strong fixed exchange rate by mandating the domestic use of a foreign currency.