When economists talk about growth in the economy, they measure that growth as the
a. absolute change in nominal GDP from one period to another.
b. percentage change in nominal GDP from one period to another.
c. absolute change in real GDP from one period to another.
d. percentage change in real GDP from one period to another.
d
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When a domestic currency is completely backed by a foreign currency and the note-issuing authority establishes a fixed exchange rate to this foreign currency, then the country is said to have
A) created a currency board. B) undergone dollarization. C) adopted a managed exchange system. D) adopted an exchange rate monetary system.
A potential outcome
A) is the outcome for an individual under a potential treatment. B) cannot be observed because most individuals do not achieve their potential. C) is the same as a causal effect. D) is none of the above.
Unlike the practice in many other countries, in the United States:
A. the agency responsible for monetary policy is not directly controlled by the government. B. only monetary policy is used to influence the economy, and fiscal policy is not allowed. C. the agency responsible for fiscal policy is not directly controlled by the government. D. only fiscal policy is used to influence the economy, and monetary policy is not allowed.
Which of the following would cause an increase in aggregate demand (AD)?
A. a rise in the foreign exchange value of the dollar B. a decrease in price levels C. an increase in interest rates D. a decrease in taxes