During a deflationary period
A) the nominal interest rate is less than the real interest rate.
B) the real interest rate is less than the nominal interest rate.
C) the price level rises.
D) the nominal interest rate does not change.
Answer: A
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A political candidate promises voters more funding for AIDS research and child care and assures them they will not have to sacrifice any other goods or services to obtain the additional programs.
A. This may be possible if the economy has unemployed resources. B. This is possible only in a fully employed economy. C. This is possible if the economy is producing on its production possibilities curve. D. None of the choices are possible.
Whenever average total cost exceeds marginal cost,
a. average total cost is rising. b. average total cost is falling. c. marginal cost is rising. d. marginal cost is falling.
Which of the following equations represents the expenditure approach?
a. GDP = C + I + G + (X – M) b. GDP = C – I – G – (X + M) c. GDP = C + I + G x (X – M) d. GDP = C – I + G x (X + M)
Refer to Figure 1A.1. If the hours worked per week are 30, the income per week is:
A. 50. B. 100. C. 150. D. 200.