The GDP figure does not accurately reflect economic welfare because
a. it does not include non monetary transactions.
b. the value of goods produced in the home is usually overstated.
c. it includes only consumption goods and services.
d. it usually includes an overstated estimate of social costs.
a. it does not include non monetary transactions.
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Which of the following will happen if the GDP of a country increases and the population remains constant?
A) Income per capita will remain constant. B) Income per capita will increase. C) Unemployment rate will increase. D) Gross national product will decrease.
Which country was least supportive of expansionary policy by the European Central Bank during the Financial Crisis of 2007-2009?
A) Spain B) Portugal C) Greece D) Germany
When economists use the term Ceteris paribus, they are indicating that:
A. the relationship between two economic variables cannot be determined. B. the analysis is true for the individual but not for the economy as a whole. C. all other variables except the ones specified are assumed to be constant. D. their conclusions are based on normative economics rather than positive economic analysis.
If the required reserve ratio decreases, the:
A. money multiplier increases. B. money multiplier decreases. C. amount of excess reserves the bank has decreases. D. money multiplier stays the same.