If nominal or money GDP increases 6 percent in 2011 (compared to 2010), and real GDP increases 4 percent over the same period, which of the following must be true?
a. Exports exceeded imports.
b. The general price level as measured by the GDP deflator fell during 2011.
c. The economy entered a recession in 2011.
d. Inflation during 2011 was 2 percent.
D
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If output equals 50,000 and full employment real GDP equals 45,000, then this economy has a(n)
A. demand gap. B. employment gap. C. recessionary gap. D. inflationary gap.
Which of the following will cause slower growth in labor productivity?
A) decreased growth in physical capital B) decreased growth in human capital such as education and training C) decreased growth in government-financed infrastructure such as highways and airports D) A and C E) all of the above
A budget deficit will be most inflationary if the aggregate
A. demand curve is very steep. B. demand curve is very flat. C. supply curve is very flat. D. supply curve is very steep.
An initial injection of money into the banking system will create new money supply through a sequence of excess reserves being transformed into loans. New money creation eventually ends because required reserves shrink loanable excess reserves in each round of new money creation
Indicate whether the statement is true or false