Labor productivity is $30 per hour and aggregate hours are 165 billion hours. What does real GDP equal?
What will be an ideal response?
Real GDP equals (labor productivity × aggregate hours) = ($30 per hour × 165 billion hours) = $4,950 billion.
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Under the new Constitution in 1789, the states gained the sovereign power to
(a) levy taxes. (b) power and issue money. (c) "regulate" the value of money. (d) create corporations by special franchise.
The cyclically adjusted surplus as a percentage of GDP is 1 percent in year 1. This surplus becomes a deficit of 2 percent of GDP in year 2. It can be concluded from year 1 to year 2 that:
A. the federal government is increasing its spending. B. the federal government is decreasing taxes. C. fiscal policy was contractionary. D. fiscal policy was expansionary.
A merger between the Ford Motor Company and General Motors would be an example of a
A) conglomerate merger. B) vertical merger. C) horizontal merger. D) trust.
Interest rates typically rise when
A) bond prices increase. B) bond prices decrease. C) the coupon payout on existing bonds increase. D) the maturity date on existing bonds extends farther into the future.