In the second quarter (3-month period) of 2001, U.S. nominal GDP increased but U.S. real GDP declined. We can conclude that:
a) nominal income declined by more than personal income.
b) the price level rose by more than nominal GDP.
c) real wages declined by more than real GDP.
d) the price level fell by more than real GDP.
b) the price level rose by more than nominal GDP.
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All of the following are stock market indexes except
A) the Dow Jones Industrial Average. B) the Russell 100 C) the Standard & Poor?s 500. D) the Wilshire 5000.
Human resources that perform the functions of organizing, managing, and assembling the other factors of production are called
A) physical capital. B) venture capital. C) entrepreneurs. D) productive capital.
Which of the following changes in the exchange rate represents an appreciation of the dollar?
a. 100 yen = $1 to 90 yen = $1 b. 1 yen = $.10 to 1 yen = $.08 c. 1 pound = $3 to 1 pound = $4 d. $1 = 25 rubles to $1 = 20 rubles e. 20 euros = $10 to 19 euros= $10
Suppose a country is perceived to have an overvalued real exchange rate does not devalue. Which of the following would we expect to occur over time?
A) a reduction in its price level B) a real depreciation of its currency C) a reduction in its trade surplus D) all of the above E) none of the above