Real GDP per person in the United States was $9864 in 1950. Over the next 48 years, it grew at a compound annual rate of 2.0%. If, however, real GDP per person had grown at an average compound annual rate of 2.5%, then real GDP per capita in the United States in 1998 would have been approximately ______ larger.
A. $3420
B. $6750
C. $9900
D. $25 500
Answer: B. $6750
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The Fed can increase the federal funds rate by
A) buying Treasury bills, which increases bank reserves. B) selling Treasury bills, which decreases bank reserves. C) buying Treasury bills, which decreases bank reserves. D) selling Treasury bills, which increases bank reserves.
Which of the following is not true of declining industries?
a. Job loss is not a problem in a declining industry because the workers can easily find jobs in expanding industries. b. Jobs may be lost by declining industries but new jobs are created in expanding industries. c. Over 60 million new jobs have been created in the United States since 1960. d. One way to solve the problems posed by declining industries is for the government to fund programs to retrain workers for jobs that are in greater demand. e. One way to solve the problems posed by declining industries is for the government to offer wage subsidies or special tax breaks that decline over time.
Potential output depends on all of the following except:
A. the size of the capital stock. B. the number of firms in the economy. C. the number of people who can work. D. technology.
You win a lottery that pays $10,000 each year for the next 5 years beginning next year. How much are your winnings worth today?
A. $50,000 B. $45,455 C. $10,000 D. indeterminate with the given information