"Nominal GDP" is a measure of GDP that adjusts for price changes
Indicate whether the statement is true or false
FALSE
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In the money market, if the price level rises, then the demand for money ________ and the equilibrium nominal interest rate ________
A) increases; rises B) increases; falls C) decreases; rises D) increases; does not change E) decreases; falls
An example of human capital would be:
A. an office chair. B. a training session on Excel. C. Excel software. D. All of these are examples of human capital.
In 2009 President Obama and Congress increased government spending. Some economists thought this increase would have little effect on output. Which of the following would make the effect of an increase in government expenditures on aggregate demand smaller?
a. the MPC is small and changes in the interest rate have a small effect on investment b. the MPC is small and changes in the interest rate have a large effect on investment c. the MPC is large and changes in the interest rate have a small effect on investment d. the MPC is large and changes in the interest rate have a large effect on investment
The most capital-intensive method of production ______.
a. is always the best b. may not always be the best c. is never the best d. is the best only in developing nations