If nominal GDP is $10 trillion and real GDP is $8 trillion, then the GDP deflator is
a. 80, and this indicates that the price level has decreased by 20 percent since the base year.
b. 80, and this indicates that the price level has increased by 80 percent since the base year.
c. 125, and this indicates that the price level has increased by 25 percent since the base year.
d. 125, and this indicates that the price level has increased by 125 percent since the base year.
c
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Why does the history of the U.S. matter?
(a) Historical knowledge helps us understand the forces that shaped the current economy. (b) The lessons of the past help us avoid future mistakes. (c) Historical knowledge helps us identify who or what is most likely to fuel future economic prosperity. (d) All of the above.
What is the expected payoff of an investment that yields $1,000,000 with a probability of 0.001 and $0 with a probability of 0.999?
A. $1,000,000 B. $1,000 C. $10,000 D. $500,000
Suppose the long-run aggregate supply curve shifts to the right as a consequence of the discovery of more efficient production technologies. Given unchanged aggregate expenditure, this implies a rise in long-run equilibrium output and a decline in the equilibrium price level
a. True b. False Indicate whether the statement is true or false
You deposit $3,000 into an N–year certificate of deposit that pays 4.5 percent annual interest, and at the end of the N years you have $4,082.59 . What is the number of years, N?
a. 4 b. 5 c. 6 d. 7