An increase in nominal GDP implies an increase in:
A. either the price level or output or both.
B. the price level.
C. both the price level and output.
D. output.
Answer: A
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Since 1990, the annual inflation rate for the U.S. has ________ and has ________.
A. remained under 4 percent; never been negative B. remained above 4 percent; never been negative C. remained above 4 percent; been negative for just one year D. remained under 4 percent; been negative for just one year
Taxpayers would be better off if a tax could just raise revenue without ______
a. altering the relative prices they face b. altering their preferences for a good c. tax shifting d. any income effects
In the short run, a monopolistically competitive firm can earn
A) positive profits only. B) zero profits only. C) zero or positive profits only. D) zero, positive or negative profits.
If the national debt is owed to foreigners,
a. the debt constitutes a burden to domestic citizens. b. economic growth will necessarily be higher than if the debt were owed to domestic citizens. c. paying off the debt will involve a transfer of resources within the country. d. future interest payments on the debt are not a burden to the nation.