If the percent change in nominal GDP is 3 percent and inflation is 4 percent, the percent change in real GDP is:
A. 1 percent.
B. 2 percent.
C. -1 percent.
D. 0 percent.
Answer: C
You might also like to view...
A market with one or a small number of firms but no barriers to entry is known as
A) a natural monopoly. B) a contestable market. C) a perfectly competitive market. D) monopolistic competition.
Which of the following statements is not characteristic of a perfectly competitive industry in long-run equilibrium?Ceteris paribus, there is no tendency for firms to either enter or exit the industry. a. A profit-maximizing firm may produce any output level at which P < LRATC. b. Every firm produces at an output level at which MC = LRATC
c. Ceteris paribus, there is no tendency for firms to either enter or exit the industry. d. No firm earns an economic profit.
Causality (what causes what) is clear and mechanical with the quantity theory of money. If M increases, with
a. V and Q being variable, the price level, P, increases b. V and Q being variable, the price level, P, decreases c. V and Q being constant, the price level, P, increases d. V and Q being constant, the price level, P, decreases e. P and Q being constant, velocity, V, increases
Which of the following statements is correct?
a. It is impossible for a country to fix its exchange rate and have an independent monetary policy at the same time. b. Flexible exchange rates are always superior to fixed exchange rates. c. Whether flexible exchange rates or fixed exchange rates are better for a nation depends on the characteristics of the economy. d. The level at which the exchange rate is fixed does not have any implications on the amount of interaction needed by the central bank to sustain the regime of fixed exchange rate.