Positive output gap indicates that
A) the actual real GDP is above natural real GDP.
B) the actual real GDP is below natural real GDP.
C) nominal GDP is above real GDP.
D) nominal GDP is below real GDP.
A
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If the marginal product of capital is smaller than the interest rate, then
a. investment in capital will fall. b. people are earning negative rents from capital. c. the supply of current consumption will decline. d. borrowing will increase.
The CPI is a measure of the overall cost of the goods and services bought by
a. a typical firm. b. the government. c. a typical consumer. d. All of the above are correct.
Consider the supply of orange juice. If the price of orange juice rises, which of the following occurs?
a. Producers of orange juice are satisfied with their revenue and leave production unchanged. b. Producers of orange juice decrease the quantity of orange juice that they produce. c. Producers of orange juice go out of business, and the supply of orange juice shifts to the left. d. Producers of orange juice increase their production of orange juice.
Many states prohibited bank branching because of all of the following except:
A. the McFadden Act of 1927. B. they wanted to protect the profits of banks since they generated tax revenue from these profits. C. they feared the concentration and monopoly power of large banks. D. they generated significant revenue from issuing bank charters.