Equilibrium gross domestic product (GDP) in the short run is determined at the point where
A. gross domestic production equals aggregate demand.
B. the rate of unemployment equals zero.
C. domestic production equals domestic consumption.
D. imports equal exports.
Answer: A
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An increase in the demand for orthodontic services leads to
A) an increase in the supply of orthodontists. B) a rise in the rates of dental insurance. C) lower prices for orthodontic care. D) an increase in the demand for orthodontists.
If an increase in the level of the money supply results in a proportionate increase in prices with no effect on any real variables, we say that
A) the Fisher relationship holds. B) money is neutral. C) money is superneutral. D) money is the most preferred store of value.
If the balance of payments accounts of a country shows a current account deficit, it means that
A. the country's foreign assets are growing more quickly than its foreign liabilities. B. the country's exports are higher than its imports. C. the country's foreign assets are growing more slowly than its foreign liabilities. D. the country is acting as a net lender to the rest of the world.
If the interest rate is 3 percent, to get back $500 in two years you would need to deposit ________ today.
A. $242.72. B. $471.30. C. $485.44. D. $494.00.