To convert a nominal GDP to a real GDP, you would use
A) the PCE deflator.
B) the CPI measure.
C) the GDP deflator.
D) the PPI measure.
C
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Which is least accurate about foreign trade?
a. In the early 1900s, the most industrialized nations exported foodstuffs and raw materials to the least developed countries. b. After the Civil War, rapid improvements in communications, like the first successful transatlantic cable, lowered the price of trade. c. After the Civil War, rapid improvements in transportation, like the opening of the Suez Canal and developments of railroads, reduced the price of shipping. d. In the late 1800s and early 1900s the network of international trade assumed many of its modern characteristics.
According to the passive approach, discretionary fiscal or monetary policy can reduce the costs of an unstable economy
a. True b. False Indicate whether the statement is true or false
Which of the following examples most likely indicates hyperinflation?
a. The price of theater tickets increases 5 percent over the past ten years. b. A grocery manager changes the price of produce three times in one day. c. The price of CDs drops from $15 each to $7 each in two months. d. A customer complains about the price of gas at a station increasing more than at other stations.
Suppose that the opportunity cost of producing goods differs between two nations. We can correctly state that
A. neither country has a comparative advantage in the production of any good. B. the two nations should not specialize in the production of goods. C. specialization can lead to a decrease in the production of all goods. D. specialization can lead to an increase in the production of all goods.