Positive demand shocks have a tendency to ________ real GDP relative to potential GDP and ________ the inflation rate
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease
A
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
The median earnings of college graduates are more than 60% greater than that of high school graduates for males ages 25-64
Indicate whether the statement is true or false
Which of the following statements about nominal GDP and real GDP is correct?
a. Nominal GDP is a better gauge of economic well-being than real GDP. b. Real GDP is a better gauge of economic well-being than nominal GDP. c. Real GDP and nominal GDP are equally good measures of economic well-being. d. Neither nominal nor real GDP provide a measure of economic well-being.
Which of the following does not represent an example of government spending?
A. Purchase of military aircraft B. Payment of Social Security benefits C. Paychecks to government workers D. Payment to the company that cleans the U.S. Capitol