Which of the following best describes a nation’s Gross Domestic Product? A) the market value of all goods and services produced in the economy, including intermediate goods B) the market value of all goods and services less depreciation C) the constant dollar value of all goods produced in the economy during a year period D) […]
Suppose per capita real GDP grows by 7% per year. Based on the Rule of 70, approximately how many years will it take for the level of per capita real GDP to double? A) 7 years B) 10 years C) 4.9 years D) none of the above ANSWER B
The total market value of final goods and services produced in an economy during a one-year period is A) personal income. B) profit. C) net national product. D) Gross Domestic Product. ANSWER D
Which of the following is a TRUE statement concerning economic growth? A) Changes in per capita nominal GDP are used to measure economic growth, but there are serious problems concerning the desirability of using figures that do not account for pollution and urban sprawl. B) Changes in per capita real GDP are used to measure […]
The total of all planned production for the entire economy is known as A) aggregate inflation. B) aggregate supply. C) aggregate expenditures. D) aggregate demand. ANSWER B
The aggregate supply curve A) becomes vertical if there is excess production capacity within the economy. B) shows a negative relationship between the price level and real Gross Domestic Product (GDP). C) shows what each producer is willing and able to produce at each income level. D) relates planned aggregate production to price level. […]
The long run aggregate supply curve (LRAS) also represents A) the full-employment level of output. B) the full-information level of output. C) the full-adjustment level of output. D) all of the above. ANSWER D
Which of the following statements is NOT true about using per capita real GDP to measure a nation’s economic growth? A) The definition does not indicate how the increase in growth is being disturbed among the nation’s population. B) The definition assumes that some of the increase in productivity goes to the poor. C) The […]
Refer to the above table. Which country had the largest increase in per capita real GDP between 2014 and 2015? A) A B) B C) C D) D ANSWER C
Refer to the above table. Which country has the lowest increase in per capita real GDP between 2014 and 2015? A) A B) B C) C D) D ANSWER A
