The real deficit depends on the:
A. nominal deficit, the rate of inflation, and the government debt.
B. rate of interest only.
C. rate of inflation only.
D. level of government expenditures and receipts only.
Answer: A
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The CPI is the price index used to calculate real GDP
a. True b. False
A consequence of an inflationary gap is ____ as output begins to decrease and prices continue to increase.
A. stagflation B. reflation C. disinflation D. perflation
Which of the following is associated with Ferdinand Magellan?
a. Rounding the Cape of Good Hope b. Sailing from Europe to India and back c. Sailing around the world d. Reaching South America e. Exploring the interior landmass of Canada
When the rate of cyclical unemployment is zero, the:
a. natural rate of unemployment must also be zero. b. rate of frictional unemployment must be negative. c. economy must have entered a recessionary stage. d. Keynesian aggregate supply curve must be horizontal. e. economy is considered to be at full employment.