If a country experiences a negative growth rate in real GDP, it means:
A. the economy is shrinking.
B. people are producing less than they did the year before.
C. there are less goods to allocate in the economy than before.
D. All of these statements are true.
Answer: D
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Macroeconomics would be concerned with
A) implications of changes in unemployment and inflation. B) the effects on individual consumers of changes in the price of gasoline for a business. C) the effects of a tax on beer. D) the effects of wage increases on steel manufacturers.
An increase in the price of butter in a country between the years 2010 and 2015 indicates: a. a decrease in demand
b. the presence of a surplus. c. a decrease in household earnings. d. the presence of inflation.
If purchasing-power parity holds, then the value of the
a. nominal exchange rate is equal to one. A dollar buys as many goods in the U.S. as it does overseas. b. nominal exchange rate is equal to one. A dollar buys the quantity of foreign currency equal to the U.S. price level divided by the foreign country's price level. c. real exchange rate is equal to one. A dollar buys as many goods in the U.S. as it does overseas. d. real exchange rate is equal to one. A dollar buys the quantity of foreign currency equal to the U.S. price level divided by the foreign country's price level.
For a wheat farmer in the middle of harvesting system, a fixed input would be
A) workers hired. B) combines rented. C) the land that had been planted. D) trucks rented to haul the wheat.