Demand-side inflation is usually accompanied by increasing real GDP, while supply-side inflation is usually accompanied by falling real GDP.
Answer the following statement true (T) or false (F)
True
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Real GDP per person in Richland is $20,000, while real GDP per person in Poorland is $10,000. However, Richland's real GDP per person is growing at 1 percent per year, and Poorland's real GDP per person is growing at 2 percent per year. After 50 years, real GDP per person in Richland minus real GDP in Poorland is:
A. positive and greater than $10,000. B. zero. C. positive but less than $10,000. D. negative.
Which of the following activities create a negative externality?
A) cleaning up the sidewalk on your block B) graduating from college C) keeping a junked car parked on your front lawn D) repainting the house you live in to improve its appearance
According to projections for 2016 by the Tax Policy Center, the 20 percent of U.S. taxpayers who make the highest incomes
A) pay about 92 percent of federal income taxes but only about 20 percent of Social Security and Medicare payroll taxes. B) pay more in excise and other taxes than they pay in Social Security and Medicare payroll taxes. C) pay almost 69 percent of federal income taxes. D) use loopholes and tax exemptions to reduce their share of federal income taxes to less than 20 percent.
Suppose the money supply is set to grow at 7%, real GDP grows at 5%, and the expected real interest rate on Aaa corporate bonds averages 6%
Using the quantity theory of money and the Fisher equation, the nominal interest rate on the Aaa corporate bond should be A) -2%. B) 2%. C) 6%. D) 8%.