The growth rate of real GDP per capita is best captured by subtracting the percentage changes in:
A. both prices and population from the nominal GDP growth rate.
B. population from the nominal GDP growth rate, while dividing it by the inflation rate in order to hold prices constant.
C. population from the nominal GDP growth rate and not the percentage changes in prices.
D. prices from the nominal GDP growth rate and not the population growth.
Answer: A
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Sam buys gasoline and coffee each week. In order to draw his budget line between gasoline and coffee, Sam would have to know
A) only how much income he has available to spend on gasoline and coffee. B) only the prices of one gallon of gasoline and one pound of coffee. C) only how much gasoline he wants to buy and how much coffee he wants to drink. D) both how much income he has to spend and the prices of one gallon of gasoline and one pound of coffee.
If ABC Printing is producing an output level of 100, where MR is $5 and MC is $3, then the firm is:
a. maximizing total profit. b. making too much profit. c. making $200 total profit. d. making $200 total loss. e. making an unknown amount of profit or loss.
How does an increase in the savings rate affect the multiplier in an economy, if at all?
a) The multiplier would turn from positive to negative. b) The multiplier would stay the same. c) The multiplier would increase. d) The multiplier would decrease.
Changes in real GDP are best used to measure
A. Population growth. B. Price level changes. C. Inflation. D. Business cycles.