Can nominal GDP increase even when real GDP decreases?
A) No, it is not possible.
B) Yes, but only if the price level decreases.
C) Yes, but only if the price level increases.
D) Yes, but only if the price level remains unchanged.
C
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Growth of real GDP per person is totally determined by the growth of average:
A. labor force participation and the share of income going to capital. B. labor force participation and the share of the population employed. C. labor productivity and the proportion of the population employed. D. labor productivity and the proportion of the population in the labor force.
Monetary management in the United States today is under the direction of the
A) Council of Economic Advisers. B) Federal Trade Commission. C) Joint Economic Committee of the Congress. D) Open Market Committee of the Federal Reserve. E) United States Chamber of Commerce.
Money as a medium of exchange refers only to
A) currency. B) gold coins. C) anything that is generally accepted as payment for goods and services. D) checks at commercial banks.
Suppose that the stock of money is $250 billion and nominal GDP is $2,000 billion. The velocity of money is
A. 0.125. B. 6. C. 8. D. 2,250.