The years from 1933 to 1937 are notable for ________
A) high unemployment, despite rapid growth of real output
B) low unemployment, despite sluggish output growth
C) persistent deflation, despite rising unemployment
D) the creation of the Federal Reserve System
E) none of the above
A
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It is estimated that in 2007, Mexico had a population of 110 million and GDP of $1 trillion. In 2006, Mexico's population was 104 million and GDP was $839 billion. Per GDP person ________ by ________ between 2006 and 2007 in Mexico
A) increased; $1038 B) increased; 5 percent C) decreased; $2013 D) decreased; 5 percent
When deflation occurs
A) the nominal interest rate is greater than the real interest rate. B) the nominal interest rate is equal to the real interest rate and inflation is negative. C) the real interest rate is greater than the nominal interest rate. D) the nominal interest rate is equal to the real interest rate and inflation is positive.
The difference between zero accounting profit and zero economic profit is that
A. an economic profit of zero indicates a fair rate of return because it includes the opportunity cost of a firm’s capital. B. an economic profit of zero indicates an unacceptable rate of return because it does not include the opportunity cost of a firm’s capital. C. an economic profit of zero indicates more than a fair rate of return because it includes opportunity cost and explicit cost. D. an accounting profit of zero indicates a fair rate of return because it includes the opportunity cost of a firm’s capital.
Refer to the graph shown. Assume the economy is in short-run equilibrium at point A below potential output. The government opts for an expansionary fiscal policy in an attempt to pull the economy out of the recession. An economist with a Classical view holding the Ricardian equivalence theorem to be practically true would conclude that the economy will most likely end up at point:
A. A. B. B. C. C. D. D.