Dissatisfaction with public school education has led many parents to try home schooling for their children. If parents cut back on their jobs outside the home in order to spend time teaching their children at home, how will this affect GDP?
a. GDP will increase.
b. Real GDP will increase and nominal GDP will decrease.
c. Both real and nominal GDP will increase.
d. GDP will decrease.
d
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If a tariff is imposed on imports of shrimp into the United States, U.S. producer surplus from shrimp will ________ and U.S. total surplus from shrimp will ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease E) increase; not change
If the United States had a financial account deficit of $50 billion, we could say the United States had
A) net imports of $50 billion. B) net foreign borrowing of $50 billion. C) acquired net foreign assets of $50 billion. D) a current account deficit of $50 billion.
Holding everything else constant, if the nominal interest rate decreases, the interest paid on the debt will ________ the debt-to-GDP ratio, and nominal GDP growth will ________ the debt-to-GDP ratio
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
Stagflation refers to a situation in which the economy is experiencing:
A. high economic growth and high inflation. B. low economic growth and low inflation. C. high economic growth and low inflation. D. low economic growth and high inflation.