If real GDP declines in a given year, nominal GDP:
A. Must also be declining
B. Must also be increasing
C. May either rise or fall
D. Is likely to remain constant
C. May either rise or fall
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If taxes are reduced, will most people save more or less than before? Does national saving rise or fall? Explain
What will be an ideal response?
Which of the following can be thought of as a barrier to entry?
A) scale economies. B) patents. C) strategic actions by incumbent firms. D) all of the above
If an individual's indifference curve map does not obey the assumption of a diminishing MRS, then
a. the individual will not maximize utility. b. the individual will buy none of good X. c. tangencies of indifference curves to the budget constraint may not be points of utility maximization. d. the budget constraint cannot be tangent to an appropriate indifference curve.
Which of the following might limit the money creation process to an amount less than the potential amount?
a. bank pursuit of profits b. public holding some cash c. business demand for loan d. increased use of credit cards