The GDP price index equals
i. nominal GDP divided by real GDP multiplied by 100.
ii. a measure of the price level.
iii. an average of current prices expressed as a percentage of base-year prices.
A) i, ii, and iii B) iii only C) ii and iii D) i only E) i and ii
A
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Non-paying activities in economics are referred to as:
A) relief. B) leisure. C) free time. D) unemployment.
In the United States, the dollar was commodity backed by:
A. gold. B. silver. C. oil. D. diamonds.
Which of the following is the best explanation of why the law of diminishing returns does not apply in the long run?
A. All factors of production are fixed in the long run. B. The MPP does not change in the long run. C. In the long run, firms can increase the availability of space and equipment to keep up with the increase in variable inputs. D. In the long run, firms have enough time to find the most qualified workers.
Which of the following statements is correct?
A. The actual reserves of a commercial bank equal its excess reserves minus its required
reserves.
B. A bank's liabilities plus its net worth equal its assets.
C. When borrowers repay bank loans, the supply of money increases.
D. A single commercial bank can safely lend a multiple amount of its excess reserves.