If the GDP price index is rising over a period of time, then the real GDP in years ________.
A. after the base year will be higher than the nominal GDP
B. after the base year will be rising faster than the nominal GDP
C. prior to the base year will be less than the nominal GDP
D. prior to the base year will be larger than the nominal GDP
Answer: D
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In a multiple regression problem involving two independent variables, if b1 is computed to be +2.0, it means that:
A) the relationship between X1 and Y is significant. B) the estimated value of Y increases by an average of 2 units for each increase of 1 unit of X1, holding X2 constant. C) the estimated value of Y increases by an average of 2 units for each increase of 1 unit of X1, without regard to X2. D) the estimated average value of Y is 2 when X1 equals zero.
Funds held in ________ are subject to reserve requirements
A) all checkable deposits B) all checkable and time deposits C) all checkable, time, and money market fund deposits D) all time deposits
Suppose a given basket of goods and services costs 9 dollars in Australia and 5,400 baht in Thailand. If the exchange rate is 600 baht per Australian dollar, purchasing power parity implies that the:
A. Australian dollar must appreciate to restore purchasing power parity. B. baht must depreciate to restore purchasing power parity. C. exchange rate has attained its long run equilibrium value. D. Australian dollar must depreciate to restore purchasing power parity.
Which of the following statements are true? (Check all that apply.)
A. Equilibrium is attained when prices are allowed to respond to market pressure. B. A binding price ceiling will always cause the quantity demanded to exceed the quantity suppled. C. A government price control can be used to bring markets into equilibrium. D. A government price control will always cause the quantity demanded to exceed the quantity supplied.